AXIS Capital (AXS) and Kingstone Companies (KINS) Critical Survey

AXIS Capital (NYSE: AXS) and Kingstone Companies (NASDAQ:KINS) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Dividends

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AXIS Capital pays an annual dividend of $1.56 per share and has a dividend yield of 2.7%. Kingstone Companies pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. AXIS Capital pays out -49.5% of its earnings in the form of a dividend. Kingstone Companies 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. AXIS Capital has increased its dividend for 11 consecutive years. AXIS Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings for AXIS Capital and Kingstone Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AXIS Capital	0	7	2	0	2.22
Kingstone Companies	0	0	1	0	3.00

AXIS Capital presently has a consensus target price of $61.33, indicating a potential upside of 6.65%. Kingstone Companies has a consensus target price of $21.00, indicating a potential upside of 17.98%. Given Kingstone Companies’ stronger consensus rating and higher probable upside, analysts clearly believe Kingstone Companies is more favorable than AXIS Capital.

Risk and Volatility

AXIS Capital has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Kingstone Companies has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Institutional & Insider Ownership

91.7% of AXIS Capital shares are held by institutional investors. Comparatively, 50.5% of Kingstone Companies shares are held by institutional investors. 2.0% of AXIS Capital shares are held by company insiders. Comparatively, 10.3% of Kingstone Companies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares AXIS Capital and Kingstone Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AXIS Capital	-6.52%	-3.42%	-0.69%
Kingstone Companies	5.93%	6.67%	2.62%

Earnings and Valuation

This table compares AXIS Capital and Kingstone Companies’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AXIS Capital	$4.59 billion	1.05	-$368.96 million	($3.15)	-18.26
Kingstone Companies	$92.77 million	2.05	$9.98 million	$0.94	18.94

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

Summary

Kingstone Companies beats AXIS Capital on 11 of the 17 factors compared between the two stocks.

About AXIS Capital

AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products worldwide. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers property insurance for commercial buildings, residential premises, construction projects, and onshore energy installations; marine insurance covering offshore energy, cargo, liability, recreational marine, fine art, specie, hull, and war; and terrorism, aviation, credit and political risk, and liability insurance. It also provides professional lines insurance that cover directors' and officers' liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, cyber and privacy, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, and not-for-profit organizations. In addition, this segment offers accidental death, travel, and specialty health products for employer and affinity groups, as well as accident and health reinsurance for catastrophic or per life events through wholesale and retail brokers, managing general agents, and underwriters. The Reinsurance segment offers reinsurance to insurance companies, including catastrophe; property reinsurance covering property damage and related losses resulting from natural and man-made perils; professional lines; and credit and surety. This segment also provides agriculture reinsurance; coverage for various types of construction risks and risks related to erection, testing, and commissioning of machinery and plants during the construction stage; marine, aviation, and personal accident reinsurance; and derivative based risk management products. The company was founded in 2001 and is headquartered in Pembroke, Bermuda.

About Kingstone Companies

Kingstone Companies, Inc., through its subsidiary, Kingstone Insurance Company, underwrites property and casualty insurance products to small businesses and individuals in New York. The company provides personal lines insurance products, such as homeowners and dwelling fire multi-peril, cooperative/condominium, renter, and personal umbrella policies. It also offers commercial liability policies comprising business owners policies, such as small business retail, service, and office risks without residential exposure to business owners; artisan's liability policies for small independent contractors; special multi-peril policies for business owners risks; and commercial umbrella policies. In addition, the company 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. Kingstone Companies, Inc. sells its products through independent 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 based in Kingston, New York.