Analyzing Infinity Property and Casualty (IPCC) and Tiptree (TIPT)

Infinity Property and Casualty (NASDAQ:IPCC) and Tiptree (NASDAQ:TIPT) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Risk and Volatility

Infinity Property and Casualty has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Tiptree has a beta of -0.26, meaning that its stock price is 126% less volatile than the S&P 500.

Insider & Institutional Ownership

91.2% of Infinity Property and Casualty shares are held by institutional investors. Comparatively, 64.1% of Tiptree shares are held by institutional investors. 3.2% of Infinity Property and Casualty shares are held by company insiders. Comparatively, 23.7% of Tiptree shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Infinity Property and Casualty and Tiptree’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Infinity Property and Casualty 3.58% 9.22% 2.65%
Tiptree 5.08% -4.57% -0.93%

Dividends

Infinity Property and Casualty pays an annual dividend of $2.32 per share and has a dividend yield of 1.6%. Tiptree pays an annual dividend of $0.14 per share and has a dividend yield of 2.4%. Infinity Property and Casualty pays out 47.4% of its earnings in the form of a dividend. Infinity Property and Casualty has raised its dividend for 10 consecutive years.

Analyst Ratings

This is a summary of current ratings and recommmendations for Infinity Property and Casualty and Tiptree, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Infinity Property and Casualty 0 1 0 0 2.00
Tiptree 0 0 0 0 N/A

Infinity Property and Casualty presently has a consensus price target of $121.00, indicating a potential downside of 15.27%. Given Infinity Property and Casualty’s higher possible upside, equities analysts plainly believe Infinity Property and Casualty is more favorable than Tiptree.

Valuation & Earnings

This table compares Infinity Property and Casualty and Tiptree’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Infinity Property and Casualty $1.52 billion 1.03 $45.38 million $4.89 29.20
Tiptree $581.80 million 0.38 $4.48 million N/A N/A

Infinity Property and Casualty has higher revenue and earnings than Tiptree.

Summary

Infinity Property and Casualty beats Tiptree on 9 of the 13 factors compared between the two stocks.

Infinity Property and Casualty Company Profile

Infinity Property and Casualty Corporation, through its subsidiaries, provides personal auto insurance products in the United States. The company offers nonstandard, commercial, and classic collector auto insurance products. It also provides reinsurance products and services. The company distributes its products primarily through a network of independent agencies and brokers. Infinity Property and Casualty Corporation was founded in 2002 and is headquartered in Birmingham, Alabama.

Tiptree Company Profile

Tiptree Inc., through its subsidiaries, underwrites and administers specialty insurance products primarily in the United States. It operates through three segments: Specialty Insurance, Asset Management, and Mortgage. The company provides credit protection insurance, warranty and service contract products, and insurance programs that underwrite niche personal and commercial lines of insurance, as well as offers value-add services, including premium finance and business processing services. It also engages in asset management operations; the provision of mortgage loans for institutional investors; and other investment activities. Tiptree Inc. markets its products through a network of independent insurance brokers and managing general agencies. The company was formerly known as Tiptree Financial Inc. and changed its name to Tiptree Inc. in December 2016. Tiptree Inc. was incorporated in 2007 and is based in New York, New York.

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