Head to Head Review: Presurance (NASDAQ:PRHI) vs. FG Nexus (NASDAQ:FGNX)

FG Nexus (NASDAQ:FGNX) and Presurance (NASDAQ:PRHI) are both small-cap financial services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Earnings and Valuation

This table compares FG Nexus and Presurance”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FG Nexus	$17.35 million	6.91	-$1.15 million	($3.50)	-0.87
Presurance	$44.19 million	0.22	$24.35 million	($2.19)	-0.36

Presurance has higher revenue and earnings than FG Nexus. FG Nexus is trading at a lower price-to-earnings ratio than Presurance, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

3.1% of FG Nexus shares are owned by institutional investors. Comparatively, 34.9% of Presurance shares are owned by institutional investors. 4.1% of FG Nexus shares are owned by insiders. Comparatively, 50.9% of Presurance shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares FG Nexus and Presurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FG Nexus	-64.92%	-7.73%	-4.93%
Presurance	-50.13%	-136.28%	-12.17%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for FG Nexus and Presurance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FG Nexus	1	1	3	0	2.40
Presurance	1	0	0	0	1.00

FG Nexus presently has a consensus target price of $8.50, indicating a potential upside of 180.53%. Given FG Nexus’ stronger consensus rating and higher probable upside, analysts clearly believe FG Nexus is more favorable than Presurance.

Volatility & Risk

FG Nexus has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Presurance has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Summary

Presurance beats FG Nexus on 8 of the 14 factors compared between the two stocks.

About FG Nexus

FG Financial Group, Inc. operates as a reinsurance and investment management holding company in the United States. The company offers specialty property and casualty reinsurance products and services. It also operates a special purpose acquisition company platform (SPAC) that provides various strategic, administrative, and regulatory support services to newly formed SPACs for a monthly fee. The company was formerly known as 1347 Property Insurance Holdings, Inc. and changed its name to FG Financial Group, Inc. in December 2020. The company was incorporated in 2012 and is based in St. Petersburg, Florida.

About Presurance

Conifer Holdings, Inc., an insurance holding company, engages in the sale of property and casualty insurance products. It offers insurance coverage in specialty commercial and personal product lines. The company underwrites various specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. It serves the commercial insurance needs of owner-operated businesses in the markets, such as hospitality, which includes restaurants, bars, taverns, and bowling centers, as well as small grocery and convenience stores; artisan contractors comprising plumbers, painters, carpenters, electricians, and other independent contractors; and security service providers, including companies that provide security guard services, security alarm products and services, and private investigative services. The company also offers specialty homeowners insurance products, such as low- value dwelling insurance tailored for owners of lower valued homes in Illinois, Indiana, Louisiana, and Texas; and wholesale agency services comprising commercial and personal lines insurance products for its insurance company subsidiaries, as well as third party insurers. Conifer Holdings, Inc. markets and sells its insurance products through a network of approximately 4,600 independent agents in 50 states in the United States. The company was incorporated in 2009 and is headquartered in Birmingham, Michigan.