Kemper (NYSE: KMPR) and Genworth Financial (NYSE:GNW) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
Valuation and Earnings
This table compares Kemper and Genworth Financial’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kemper||$2.52 billion||1.39||$16.80 million||$2.22||30.70|
|Genworth Financial||$8.37 billion||0.20||-$277.00 million||$0.67||4.96|
Volatility and Risk
Kemper has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Genworth Financial has a beta of 2.79, suggesting that its share price is 179% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Kemper and Genworth Financial, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kemper presently has a consensus price target of $55.00, suggesting a potential downside of 19.30%. Genworth Financial has a consensus price target of $3.88, suggesting a potential upside of 16.72%. Given Genworth Financial’s higher possible upside, analysts clearly believe Genworth Financial is more favorable than Kemper.
Institutional & Insider Ownership
57.7% of Kemper shares are owned by institutional investors. Comparatively, 66.9% of Genworth Financial shares are owned by institutional investors. 0.9% of Kemper shares are owned by insiders. Comparatively, 0.3% of Genworth Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Kemper and Genworth Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Kemper pays an annual dividend of $0.96 per share and has a dividend yield of 1.4%. Genworth Financial does not pay a dividend. Kemper pays out 43.2% of its earnings in the form of a dividend.
Kemper beats Genworth Financial on 11 of the 17 factors compared between the two stocks.
Kemper Company Profile
Kemper Corporation (Kemper) is a diversified insurance holding company. The Company, through its subsidiaries, provides automobile, homeowners, life, health and other insurance products to individuals and businesses. The Company operates through two segments: Property & Casualty Insurance, and Life & Health Insurance. The Property & Casualty Insurance segment’s products include personal automobile insurance, both preferred and nonstandard, homeowners insurance, other personal insurance and commercial automobile insurance. These products are distributed primarily through independent agents and brokers. The Life & Health Insurance segment’s products are individual life, accident, health and property insurance. These products are distributed by career agents employed by the Company and independent agents and brokers.
Genworth Financial Company Profile
Genworth Financial, Inc. (Genworth) is a financial security company. The Company provides insurance, wealth management, investment and financial solutions. As of December 31, 2011, the Company had more than 15 million customers, with a presence in more than 25 countries. The Company operates in Insurance, Mortgage Insurance and Corporate and Runoff. The Mortgage Insurance Division includes the business segments, such as International Mortgage Insurance and U.S. Mortgage Insurance. The Corporate and Runoff Division includes the Runoff segment and Corporate and Other activities. In September 2013, Genworth Financial, Inc closed the sale of its Wealth Management business, including Genworth Financial Wealth Management and alternative solutions provider, the Altegris companies, to a partnership of Aquiline Capital Partners and Genstar Capital.
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