Analyzing Citizens (NYSE:CIA) and Fidelis Insurance (NYSE:FIHL)

Citizens (NYSE:CIA) and Fidelis Insurance (NYSE:FIHL) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Valuation and Earnings

This table compares Citizens and Fidelis Insurance”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citizens	$255.62 million	0.77	$14.59 million	$0.21	16.83
Fidelis Insurance	$2.17 billion	1.08	$225.50 million	$2.21	11.02

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

Profitability

This table compares Citizens and Fidelis Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citizens	4.55%	4.73%	0.63%
Fidelis Insurance	9.02%	8.62%	1.62%

Volatility & Risk

Citizens has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Fidelis Insurance has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.

Insider and Institutional Ownership

13.7% of Citizens shares are owned by institutional investors. Comparatively, 82.0% of Fidelis Insurance shares are owned by institutional investors. 2.2% of Citizens shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Citizens and Fidelis Insurance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citizens	0	1	2	0	2.67
Fidelis Insurance	2	2	3	0	2.14

Citizens currently has a consensus target price of $5.50, indicating a potential upside of 55.59%. Fidelis Insurance has a consensus target price of $21.92, indicating a potential downside of 9.99%. Given Citizens’ stronger consensus rating and higher possible upside, equities analysts clearly believe Citizens is more favorable than Fidelis Insurance.

Summary

Fidelis Insurance beats Citizens on 9 of the 14 factors compared between the two stocks.

About Citizens

Citizens, Inc. provides life insurance products in the United States and internationally. The company operates in two segments, Life Insurance and Home Service Insurance. The Life Insurance segment issues ordinary whole life insurance and endowment policies in the United States dollar-denominated amounts to non-U.S. residents in through independent marketing agencies and consultants. The Home Service Insurance segment offers final expense life insurance and property insurance policies to middle-and lower-income households, as well as whole life products in Louisiana, Mississippi, and Arkansas. This segment provides its products and services through funeral homes and independent agents. The company provides accident and health insurance policies. Citizens, Inc. was founded in 1969 and is headquartered in Austin, Texas.

About Fidelis Insurance

Fidelis Insurance Holdings Limited, a specialty insurer, provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, as well as other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.