Critical Contrast: Conifer (NASDAQ:CNFR) & Fundamental Global (NASDAQ:FGF)

Conifer (NASDAQ:CNFR) and Fundamental Global (NASDAQ:FGF) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Conifer and Fundamental Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Conifer	-26.23%	-241.08%	-9.65%
Fundamental Global	14.32%	21.51%	6.89%

Insider & Institutional Ownership

34.9% of Conifer shares are owned by institutional investors. Comparatively, 3.1% of Fundamental Global shares are owned by institutional investors. 70.7% of Conifer shares are owned by insiders. Comparatively, 62.7% of Fundamental Global shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Conifer and Fundamental Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Conifer	1	0	0	0	1.00
Fundamental Global	0	0	0	0	N/A

Conifer presently has a consensus price target of $0.61, indicating a potential downside of 39.00%. Given Conifer’s higher possible upside, equities research analysts clearly believe Conifer is more favorable than Fundamental Global.

Volatility and Risk

Conifer has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Fundamental Global has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Valuation and Earnings

This table compares Conifer and Fundamental Global’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Conifer	$98.76 million	0.12	-$25.90 million	($2.12)	-0.47
Fundamental Global	$26.84 million	1.42	$3.85 million	$0.19	7.05

Fundamental Global has lower revenue, but higher earnings than Conifer. Conifer is trading at a lower price-to-earnings ratio than Fundamental Global, indicating that it is currently the more affordable of the two stocks.

Summary

Fundamental Global beats Conifer on 7 of the 12 factors compared between the two stocks.

About Conifer

Conifer Holdings, Inc., an insurance holding company, engages in the sale of property and casualty insurance products. The company offers insurance coverage in specialty commercial and personal product lines. It also underwrites various specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. The company serves the commercial insurance needs of owner-operated businesses in the markets, such as hospitality, which includes restaurants, bars, taverns, and bowling centers, as well as small grocery and convenience stores; artisan contractors comprising plumbers, painters, carpenters, electricians, and other independent contractors; and security service providers, including companies that provide security guard services, security alarm products and services, and private investigative services. It offers specialty homeowners insurance products, such as low- value dwelling insurance tailored for owners of lower valued homes in Illinois, Indiana, Louisiana, and Texas; and wholesale agency services comprising commercial and personal lines insurance products for its insurance company subsidiaries, as well as third party insurers. Conifer Holdings, Inc. markets and sells its insurance products through a network of independent agents in 50 states in the United States. The company was incorporated in 2009 and is headquartered in Troy, Michigan.

About Fundamental Global

Fundamental Global Inc. engages in reinsurance, merchant banking, and asset management business. The company offers initial public offering services. It also offers specialty property and casualty reinsurance services. In addition, the company provides investment advisory services. The company was formerly known as Ballantyne Strong, Inc. and changed its name to FG Group Holdings Inc. in December 2022. Fundamental Global Inc. was founded in 1932 and is based in Mooresville, North Carolina.