Allied World Assurance (OTCMKTS: AWHHF) and Investors Title (NASDAQ:ITIC) are both companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.
Volatility & Risk
Allied World Assurance has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Investors Title has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.
Allied World Assurance pays an annual dividend of $0.52 per share and has a dividend yield of 1.0%. Investors Title pays an annual dividend of $1.60 per share and has a dividend yield of 0.8%. Allied World Assurance pays out 17.5% of its earnings in the form of a dividend. Investors Title pays out 11.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This table compares Allied World Assurance and Investors Title’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Allied World Assurance||12.56%||8.96%||2.42%|
Valuation and Earnings
This table compares Allied World Assurance and Investors Title’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Allied World Assurance||N/A||N/A||N/A||$2.97||17.36|
|Investors Title||$161.65 million||2.30||$25.71 million||$13.56||14.50|
Investors Title has higher revenue and earnings than Allied World Assurance. Investors Title is trading at a lower price-to-earnings ratio than Allied World Assurance, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
86.5% of Allied World Assurance shares are held by institutional investors. Comparatively, 41.8% of Investors Title shares are held by institutional investors. 3.2% of Allied World Assurance shares are held by insiders. Comparatively, 27.5% of Investors Title shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for Allied World Assurance and Investors Title, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Allied World Assurance||0||1||0||0||2.00|
Allied World Assurance currently has a consensus target price of $24.50, indicating a potential downside of 52.47%. Given Allied World Assurance’s higher probable upside, equities analysts plainly believe Allied World Assurance is more favorable than Investors Title.
Investors Title beats Allied World Assurance on 7 of the 12 factors compared between the two stocks.
Allied World Assurance Company Profile
Allied World Assurance Company Holdings Ltd is a Germany-based holding company. It provides property, casualty and specialty insurance and reinsurance solutions to clients around the world. The Company operates in three segments: North American Insurance, Global Markets Insurance and Reinsurance. The North American Insurance segment consists of the Company’s direct insurance operations in the United States, Bermuda and Canada. The Global Markets Insurance segment includes all of the Company’s direct insurance operations outside of North America. The Company’s reinsurance segment includes the reinsurance of property, general casualty, professional liability, specialty lines and property catastrophe coverage’s written by other reinsurance companies. The Company leases space in Australia, Bermuda, Canada, Hong Kong, Ireland, Labuan, Singapore, the United Kingdom and the United States for the operation of its North American Insurance, Global Markets Insurance and Reinsurance segments.
Investors Title Company Profile
Investors Title Company is an insurance holding company. The Company, through its subsidiaries, Investors Title Insurance Company (ITIC) and National Investors Title Insurance Company (NITIC), is engaged in issuance of residential and commercial title insurance, Investors Title Insurance Company (ITIC) and National Investors Title Insurance Company (NITIC). The Company also provides tax-deferred real property exchange services through its subsidiaries, Investors Title Exchange Corporation (ITEC) and Investors Title Accommodation Corporation (ITAC); investment management and trust services to individuals, trusts and other entities through its subsidiary, Investors Trust Company (Investors Trust), and management services to title insurance agencies through its subsidiary, Investors Title Management Services (ITMS). In addition, the Company operates in the issuance of residential and commercial title insurance through ITIC and NITIC segment.
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