Reviewing Kemper (NYSE:KMPR) and AA (OTCMKTS:AATDF)

Kemper (NYSE:KMPR) and AA (OTCMKTS:AATDF) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Profitability

This table compares Kemper and AA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kemper	2.99%	8.02%	1.80%
AA	N/A	N/A	N/A

Earnings and Valuation

This table compares Kemper and AA”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kemper	$4.79 billion	0.40	$143.30 million	$2.19	14.85
AA	N/A	N/A	N/A	N/A	N/A

Kemper has higher revenue and earnings than AA.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Kemper and AA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kemper	2	5	1	0	1.88
AA	0	0	0	0	0.00

Kemper presently has a consensus target price of $56.50, suggesting a potential upside of 73.69%. Given Kemper’s stronger consensus rating and higher probable upside, equities analysts clearly believe Kemper is more favorable than AA.

Insider & Institutional Ownership

86.2% of Kemper shares are held by institutional investors. 6.2% of Kemper shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Kemper beats AA on 9 of the 9 factors compared between the two stocks.

About Kemper

Kemper Corporation, a diversified insurance holding company, engages in the provision of insurance products to individuals and businesses in the United States. The company operates through three segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance, and Life & Health Insurance. It provides preferred and specialty automobile, homeowners, renters, fire, umbrella, general liability, and various other property and casualty insurance to individuals, as well as commercial automobile insurance to businesses. The company also offers life insurance, including permanent and term insurance; and supplemental accident and health insurance products, such as Medicare supplement insurance, fixed hospital indemnity, home health care, specified disease, and accident-only plans to individuals in rural, suburban, and urban areas. It distributes its products through independent agents and brokers. The company was formerly known as Unitrin, Inc. and changed its name to Kemper Corporation in August 2011. Kemper Corporation was incorporated in 1990 and is headquartered in Chicago, Illinois.

About AA

AA plc provides roadside assistance, insurance, and driving services in the United Kingdom. It operates through two segments, Roadside and Insurance. The company offers breakdowns cover for cars, motorcycles, caravans, vans, and towing; car, motorbike, van, and caravan insurance; and loans, savings, mortgage, travel currency card, insurance, and credit card products. It also provides home, content, building, pet, and holiday home insurance products; and travel services. In addition, the company offers driving advisory services, such as child safety, fuel and environment, legal advisory, service and repair, safety, security, and driving cost and other services; car and MOT services; and financial services, such as personal loans, car loans, home improvement loans, debt consolidation loans, wedding loans, loan management, savings, credit cards, and online security services, as well as reinsurance services. It serves fleet and leasing companies. The company was founded in 1905 and is headquartered in Basingstoke, the United Kingdom.