AMERISAFE (NASDAQ:AMSF) versus Progressive (NYSE:PGR) Financial Review

Progressive (NYSE:PGRGet Free Report) and AMERISAFE (NASDAQ:AMSFGet Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Institutional & Insider Ownership

85.3% of Progressive shares are held by institutional investors. Comparatively, 97.4% of AMERISAFE shares are held by institutional investors. 0.3% of Progressive shares are held by company insiders. Comparatively, 1.6% of AMERISAFE shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Progressive and AMERISAFE, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Progressive 1 9 9 0 2.42
AMERISAFE 0 0 0 0 N/A

Progressive presently has a consensus price target of $186.50, indicating a potential downside of 9.82%. Given Progressive’s higher probable upside, research analysts plainly believe Progressive is more favorable than AMERISAFE.

Profitability

This table compares Progressive and AMERISAFE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Progressive 6.28% 21.25% 4.36%
AMERISAFE 20.24% 17.19% 4.38%

Earnings & Valuation

This table compares Progressive and AMERISAFE’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Progressive $62.11 billion 1.95 $3.90 billion $6.58 31.43
AMERISAFE $306.85 million 3.13 $62.11 million $3.23 15.53

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

Risk and Volatility

Progressive has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, AMERISAFE has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.

Dividends

Progressive pays an annual dividend of $0.85 per share and has a dividend yield of 0.4%. AMERISAFE pays an annual dividend of $1.48 per share and has a dividend yield of 2.9%. Progressive pays out 12.9% of its earnings in the form of a dividend. AMERISAFE pays out 45.8% 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. AMERISAFE has raised its dividend for 11 consecutive years. AMERISAFE is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Progressive beats AMERISAFE on 9 of the 16 factors compared between the two stocks.

About Progressive

(Get Free Report)

The Progressive Corporation, an insurance holding company, provides personal and commercial auto, personal residential and commercial property, business related general liability, and other specialty property-casualty insurance products and related services in the United States. It operates in three segments: Personal Lines, Commercial Lines, and Property. The Personal Lines segment writes insurance for personal autos and recreational vehicles (RV). This segment's products include personal auto insurance; and special lines products, including insurance for motorcycles, ATVs, RVs, watercrafts, snowmobiles, and related products. The Commercial Lines segment provides auto-related liability and physical damage insurance, and business-related general liability and property insurance for autos, vans, and pick-up trucks used by small businesses, as well as non-fleet taxis, black-car services, and airport taxis; tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses, and long-haul operators; dump trucks used by light contractors and heavy constructions; log trucks and garbage trucks used by dirt, sand and gravel, logging, garbage/debris removal, and coal-type businesses; and tow trucks and wreckers used in towing services and gas/service station businesses. The Property segment writes residential property insurance for homeowners, other property owners, and renters, as well as offers manufactured homes, personal umbrella insurance, and primary and excess flood insurance. The company offers policy issuance and claims adjusting services; acts as an agent to homeowners, general liability, workers' compensation insurance, and other products; and reinsurance services. It sells its products through independent insurance agencies, as well as through mobile applications and over the phone. The Progressive Corporation was founded in 1937 and is headquartered in Mayfield Village, Ohio.

About AMERISAFE

(Get Free Report)

AMERISAFE, Inc., an insurance holding company, underwrites workers' compensation insurance in the United States. The company provides benefits to injured employees for temporary or permanent disability, death, and medical and hospital expenses. It sells its products through retail and wholesale brokers and agents; and small and mid-sized employers engaged in hazardous industries, including construction, trucking, logging and lumber, agriculture, manufacturing, telecommunications, and maritime. AMERISAFE, Inc. was incorporated in 1985 and is based in DeRidder, Louisiana.

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