Critical Survey: W. R. Berkley (NYSE:WRB) versus Kingstone Companies (NASDAQ:KINS)

W. R. Berkley (NYSE:WRBGet Free Report) and Kingstone Companies (NASDAQ:KINSGet Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

66.3% of W. R. Berkley shares are owned by institutional investors. Comparatively, 27.5% of Kingstone Companies shares are owned by institutional investors. 22.9% of W. R. Berkley shares are owned by insiders. Comparatively, 10.4% of Kingstone Companies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

W. R. Berkley has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Kingstone Companies has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for W. R. Berkley and Kingstone Companies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
W. R. Berkley 0 4 5 0 2.56
Kingstone Companies 1 0 0 0 1.00

W. R. Berkley presently has a consensus price target of $83.56, suggesting a potential upside of 3.53%. Kingstone Companies has a consensus price target of $1.75, suggesting a potential downside of 46.15%. Given W. R. Berkley’s stronger consensus rating and higher probable upside, equities analysts plainly believe W. R. Berkley is more favorable than Kingstone Companies.

Valuation and Earnings

This table compares W. R. Berkley and Kingstone Companies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
W. R. Berkley $12.14 billion 1.71 $1.38 billion $5.06 15.95
Kingstone Companies $130.16 million 0.27 -$22.52 million ($1.22) -2.66

W. R. Berkley has higher revenue and earnings than Kingstone Companies. Kingstone Companies is trading at a lower price-to-earnings ratio than W. R. Berkley, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares W. R. Berkley and Kingstone Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
W. R. Berkley 11.38% 19.40% 3.82%
Kingstone Companies -9.03% -42.09% -4.21%

Summary

W. R. Berkley beats Kingstone Companies on 14 of the 14 factors compared between the two stocks.

About W. R. Berkley

(Get Free Report)

W. R. Berkley Corporation, an insurance holding company, operates as a commercial lines writer in the United States and internationally. It operates in two segments, Insurance and Reinsurance & Monoline Excess. The Insurance segment underwrites commercial insurance business, including premises operations, commercial automobile, property, products liability, and general and professional liability lines. It also provides workers' compensation insurance products; accident and health insurance and reinsurance products; insurance for commercial risks; casualty and specialty environmental products for contractors, consultants, and property owners and facilities operators; specialized insurance coverages for fine arts and jewelry exposures; umbrella and excess liability coverage products; and liquor liability and inland marine coverage for small to medium-sized insureds. In addition, this segment offers commercial general liability, umbrella, professional liability, directors and officers, commercial property, and surety products, as well as products for technology, and life sciences and travel industries; cyber risk solutions; casualty, group life, and crime and fidelity related insurance products; personal lines insurance solutions, including home, condo/co-op, auto, and collectibles; automobile, law enforcement, public officials and educator's legal, and employment practices liability, as well as incidental medical and property and crime insurance products; and at-risk and alternative risk insurance program management services. The Reinsurance & Monoline Excess segment provides other insurance companies and self-insureds with assistance in managing their net risk through reinsurance on a portfolio basis through treaty reinsurance or on an individual basis through facultative reinsurance. W. R. Berkley Corporation was founded in 1967 and is based in Greenwich, Connecticut.

About Kingstone Companies

(Get Free Report)

Kingstone Companies, Inc., through its subsidiary, Kingstone Insurance Company, underwrites property and casualty insurance products to individuals in the United States. It offers personal line of insurance products, including homeowners and dwelling fire multi-peril, cooperative/condominiums, renters, and personal umbrella policies. The company also provides for-hire vehicle physical damage only policies for livery and car service vehicles and taxicabs; and canine legal liability policies, as well as reinsurance products. It underwrites its products through retail and wholesale agents and brokers. The company was formerly known as DCAP Group, Inc. and changed its name to Kingstone Companies, Inc. in July 2009. Kingstone Companies, Inc. was founded in 1886 and is headquartered in Kingston, New York.

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