Reviewing MediaAlpha (NYSE:MAX) & Assurant (NYSE:AIZ)

Assurant (NYSE:AIZGet Rating) and MediaAlpha (NYSE:MAXGet Rating) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings for Assurant and MediaAlpha, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Assurant 0 0 4 0 3.00
MediaAlpha 0 3 1 0 2.25

Assurant presently has a consensus target price of $193.48, suggesting a potential upside of 6.02%. MediaAlpha has a consensus target price of $18.60, suggesting a potential upside of 90.77%. Given MediaAlpha’s higher probable upside, analysts plainly believe MediaAlpha is more favorable than Assurant.

Profitability

This table compares Assurant and MediaAlpha’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Assurant 13.23% 11.23% 1.70%
MediaAlpha -2.06% N/A -3.97%

Insider and Institutional Ownership

91.4% of Assurant shares are held by institutional investors. Comparatively, 65.5% of MediaAlpha shares are held by institutional investors. 0.4% of Assurant shares are held by company insiders. Comparatively, 9.6% of MediaAlpha shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Assurant and MediaAlpha’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Assurant $10.19 billion 0.97 $1.37 billion $22.88 7.98
MediaAlpha $645.27 million 0.92 -$5.28 million ($0.38) -25.66

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

Risk & Volatility

Assurant has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, MediaAlpha has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Summary

Assurant beats MediaAlpha on 10 of the 13 factors compared between the two stocks.

About Assurant (Get Rating)

Assurant, Inc., together with its subsidiaries, provides lifestyle and housing solutions that support, protect, and connect consumer purchases in North America, Latin America, Europe, and the Asia Pacific. The company operates through two segments: Global Lifestyle and Global Housing. The Global Lifestyle segment offers mobile device solutions, and extended service products and related services for mobile devices, consumer electronics, and appliances; vehicle protection and related services; and credit protection and other insurance products. The Global Housing segment provides lender-placed homeowners insurance, manufactured housing, and flood insurance; and renters insurance and related products, as well as voluntary manufactured housing insurance, voluntary homeowners insurance, and other specialty products. The company was formerly known as Fortis, Inc. and changed its name to Assurant, Inc. in February 2004. Assurant, Inc. was founded in 1892 and is headquartered in New York, New York.

About MediaAlpha (Get Rating)

MediaAlpha, Inc., through its subsidiaries, operates an insurance customer acquisition platform in the United States. It optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. The company was founded in 2014 and is headquartered in Los Angeles, California. MediaAlpha, Inc. is a subsidiary of White Mountains Insurance Group, Ltd.

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