Financial Comparison: Ms&Ad Insurance Group (OTCMKTS:MSADY) vs. HCI Group (OTCMKTS:HCI)

Ms&Ad Insurance Group (OTCMKTS:MSADY) and HCI Group (NYSE:HCI) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.

Risk & Volatility

Ms&Ad Insurance Group has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, HCI Group has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Insider & Institutional Ownership

0.1% of Ms&Ad Insurance Group shares are owned by institutional investors. Comparatively, 58.1% of HCI Group shares are owned by institutional investors. 24.1% of HCI Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Ms&Ad Insurance Group and HCI Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ms&Ad Insurance Group $49.62 billion 0.38 $1.73 billion $1.56 10.25
HCI Group $231.29 million 1.55 $17.73 million $3.23 13.86

Ms&Ad Insurance Group has higher revenue and earnings than HCI Group. Ms&Ad Insurance Group is trading at a lower price-to-earnings ratio than HCI Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Ms&Ad Insurance Group and HCI Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ms&Ad Insurance Group 0 0 0 0 N/A
HCI Group 0 1 0 0 2.00

HCI Group has a consensus price target of $42.00, suggesting a potential downside of 6.19%. Given HCI Group’s higher probable upside, analysts clearly believe HCI Group is more favorable than Ms&Ad Insurance Group.

Profitability

This table compares Ms&Ad Insurance Group and HCI Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ms&Ad Insurance Group 3.70% 7.01% 0.84%
HCI Group 5.32% 5.92% 1.38%

Dividends

Ms&Ad Insurance Group pays an annual dividend of $0.48 per share and has a dividend yield of 3.0%. HCI Group pays an annual dividend of $1.60 per share and has a dividend yield of 3.6%. Ms&Ad Insurance Group pays out 30.8% of its earnings in the form of a dividend. HCI Group pays out 49.5% 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.

Summary

HCI Group beats Ms&Ad Insurance Group on 9 of the 14 factors compared between the two stocks.

Ms&Ad Insurance Group Company Profile

MS&AD Insurance Group Holdings, Inc., an insurance holding company, provides insurance and financial services worldwide. The company offers various life and non-life insurance products, including fire and allied, marine, personal accident, voluntary automobile, compulsory automobile liability, medical and nursing care, and other insurance products; individual annuity insurance and whole life insurance products; and reinsurance services, as well as income guarantee insurance products. It also provides financial services, including asset management, financial guarantees, 401k, alternative risk transfer, personal finance, and venture capital finance; and risk management services. In addition, the company offers administration, credit guarantee, and loan services; and roadside assistance and house support services, as well as operates retirement homes and elderly daycare centers. MS&AD Insurance Group Holdings, Inc. provides its products and services through cross-selling, as well as other sales channels, including financial institution agents, life insurance professionals, and direct marketing. The company was formerly known as Mitsui Sumitomo Insurance Group Holdings, Inc. and changed its name to MS&AD Insurance Group Holdings, Inc. in April 2010. MS&AD Insurance Group Holdings, Inc. was founded in 1918 and is headquartered in Tokyo, Japan.

HCI Group Company Profile

HCI Group, Inc. engages in the property and casualty insurance, reinsurance, real estate, and information technology businesses in Florida. It provides residential insurance products, such as homeowners insurance, flood insurance, and wind-only insurance to homeowners, condominium owners, and tenants, as well as offers reinsurance programs. The company also owns and operates one full-service restaurant, two marinas, three retail shopping centers, one office building, and one vacant shopping center for investment purposes. In addition, it designs and develops Web-based applications and products for mobile devices. The company was formerly known as Homeowners Choice, Inc. and changed its name to HCI Group, Inc. in May 2013. HCI Group, Inc. was founded in 2006 and is headquartered in Tampa, Florida.

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