Contrasting Atlantic American (NASDAQ:AAME) & Power Co. of Canada (OTCMKTS:PWCDF)

Atlantic American (NASDAQ:AAMEGet Free Report) and Power Co. of Canada (OTCMKTS:PWCDFGet Free Report) are both financial services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Earnings and Valuation

This table compares Atlantic American and Power Co. of Canada’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlantic American $187.85 million 0.29 $1.52 million $0.13 20.89
Power Co. of Canada N/A N/A N/A $2.72 10.74

Atlantic American has higher revenue and earnings than Power Co. of Canada. Power Co. of Canada is trading at a lower price-to-earnings ratio than Atlantic American, indicating that it is currently the more affordable of the two stocks.

Dividends

Atlantic American pays an annual dividend of $0.02 per share and has a dividend yield of 0.7%. Power Co. of Canada pays an annual dividend of $1.16 per share and has a dividend yield of 4.0%. Atlantic American pays out 15.4% of its earnings in the form of a dividend. Power Co. of Canada pays out 42.6% 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.

Institutional & Insider Ownership

5.7% of Atlantic American shares are held by institutional investors. Comparatively, 41.7% of Power Co. of Canada shares are held by institutional investors. 80.0% of Atlantic American 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Atlantic American and Power Co. of Canada, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlantic American 0 0 0 0 N/A
Power Co. of Canada 0 0 0 0 N/A

Power Co. of Canada has a consensus target price of $38.93, indicating a potential upside of 33.18%. Given Power Co. of Canada’s higher possible upside, analysts plainly believe Power Co. of Canada is more favorable than Atlantic American.

Profitability

This table compares Atlantic American and Power Co. of Canada’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlantic American 1.67% 7.28% 2.04%
Power Co. of Canada N/A N/A N/A

Summary

Atlantic American beats Power Co. of Canada on 7 of the 11 factors compared between the two stocks.

About Atlantic American

(Get Free Report)

Atlantic American Corporation, through its subsidiaries, provides life and health, and property and casualty insurance products in the United States. It operates through American Southern and Bankers Fidelity segments. The company offers property and casualty insurance products, including business automobile insurance coverage for state governments, local municipalities, and other motor pools and fleets; and inland marine and general liability insurance products. It also provides surety bond coverage for subdivision construction; school bus contracts; and performance and payment bonds. In addition, the company offers individual and group whole life insurance products; medicare supplement insurance products; and other accident and health insurance products comprising various individual and group policies for the payment of standard benefits for the treatment of diagnosed cancer and other critical illnesses, as well as various other products, such as short-term nursing facility care, accident expense, hospital indemnity, and disability coverages. It markets its products through independent agents and brokers. The company was founded in 1937 and is headquartered in Atlanta, Georgia. Atlantic American Corporation operates as a subsidiary of Atlantic American / Delta Group.

About Power Co. of Canada

(Get Free Report)

Power Corporation of Canada, an international management and holding company, offers financial services in North America, Europe, and Asia. It operates through Lifeco, IGM Financial, and GBL segments. The company offers life, disability, critical illness, accidental death, dismemberment, health and dental protection, and creditor insurance; retirement and investment management; fund and asset management; reinsurance and retrocession; investment advisory, financial planning, and related services; fund products; and protection and wealth management services. It also provides employer-sponsored retirement plan, individual retirement account and drawdown, investment option, and education services, as well as taxable brokerage accounts; private keeping and administrative services; payout annuities, equity release mortgages, life bonds, mortgage, securities, pension, private equity, and financial services; and investment products, such as equity, fixed income, absolute return and alternative strategies, exchange traded funds, and trust funds. The company was incorporated in 1925 and is based in Montreal, Canada. Power Corporation of Canada operates as a subsidiary of Pansolo Holding Inc.

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