Metromile (NASDAQ:MILE) versus FedNat (NASDAQ:FNHC) Critical Contrast

FedNat (NASDAQ:FNHCGet Rating) and Metromile (NASDAQ:MILEGet Rating) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for FedNat and Metromile, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FedNat 0 0 0 0 N/A
Metromile 0 2 0 0 2.00

Metromile has a consensus target price of $4.53, suggesting a potential upside of 381.38%. Given Metromile’s higher possible upside, analysts plainly believe Metromile is more favorable than FedNat.

Valuation and Earnings

This table compares FedNat and Metromile’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FedNat $245.55 million 0.03 -$103.10 million ($6.59) -0.05
Metromile $104.90 million 1.17 -$216.46 million ($1.81) -0.52

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

Risk and Volatility

FedNat has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Metromile has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Profitability

This table compares FedNat and Metromile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FedNat -46.44% -185.40% -7.63%
Metromile -130.53% -57.64% -35.26%

Insider & Institutional Ownership

37.7% of FedNat shares are held by institutional investors. Comparatively, 62.5% of Metromile shares are held by institutional investors. 10.8% of FedNat shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

FedNat beats Metromile on 7 of the 12 factors compared between the two stocks.

FedNat Company Profile (Get Rating)

FedNat Holding Company, together with its subsidiaries, engages in the insurance underwriting, distribution, and claims processing business in Florida, Louisiana, Texas, Georgia, South Carolina, Alabama, and Mississippi. The company is involved in the homeowners and casualty insurance; and personal automobile insurance businesses, as well as commercial general liability and federal flood businesses. It markets and distributes its own and third-party insurers' products, and other services through a network of independent and general agents. The company was formerly known as Federated National Holding Company and changed its name to FedNat Holding Company in May 2018. FedNat Holding Company was founded in 1991 and is based in Sunrise, Florida.

Metromile Company Profile (Get Rating)

Metromile, Inc. provides insurance policies for automobile owners in the United States. It operates through two segments, Insurance Services and Enterprise Business Solutions. The company offers pay-per-mile auto insurance policies. It also provides The Pulse, a device that plugs into the diagnostic port of its customer's car and transmits data, such as miles driven, driving habits, phone use, speeding, hard braking, accelerating, cornering, and location over wireless cellular networks. In addition, the company offers access to its technology under software as a service arrangement, as well as professional services to third-party customers. Metromile, Inc. was founded in 2011 and is headquartered in San Francisco, California.

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