Comparing International General Insurance (NASDAQ:IGIC) & Allstate (NYSE:ALL)

Allstate (NYSE:ALL) and International General Insurance (NASDAQ:IGIC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Allstate and International General Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allstate	18.97%	41.64%	9.82%
International General Insurance	20.68%	17.03%	5.45%

Valuation & Earnings

This table compares Allstate and International General Insurance”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allstate	$67.69 billion	0.98	$10.28 billion	$50.08	5.22
International General Insurance	$516.90 million	2.25	$127.15 million	$2.49	10.93

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Allstate and International General Insurance, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allstate	3	10	5	3	2.38
International General Insurance	1	0	2	0	2.33

Allstate presently has a consensus price target of $265.53, indicating a potential upside of 1.63%. International General Insurance has a consensus price target of $30.00, indicating a potential upside of 10.25%. Given International General Insurance’s higher probable upside, analysts plainly believe International General Insurance is more favorable than Allstate.

Volatility & Risk

Allstate has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, International General Insurance has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500.

Dividends

Allstate pays an annual dividend of $4.32 per share and has a dividend yield of 1.7%. International General Insurance pays an annual dividend of $0.30 per share and has a dividend yield of 1.1%. Allstate pays out 8.6% of its earnings in the form of a dividend. International General Insurance pays out 12.0% 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. Allstate has increased its dividend for 15 consecutive years and International General Insurance has increased its dividend for 2 consecutive years. Allstate is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

76.5% of Allstate shares are held by institutional investors. Comparatively, 54.2% of International General Insurance shares are held by institutional investors. 1.5% of Allstate shares are held by company insiders. Comparatively, 20.1% of International General Insurance shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Allstate beats International General Insurance on 13 of the 18 factors compared between the two stocks.

About Allstate

The Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. It operates in five segments: Allstate Protection; Protection Services; Allstate Health and Benefits; Run-off Property-Liability; and Corporate and Other segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; other personal lines products; and commercial lines products through agents, contact centers, and online. The Protection Services segment provides consumer product protection; protection and insurance products, including vehicle service contracts, guaranteed asset protection, road hazard tire and wheel, and paintless dent repair protection; and roadside assistance, device and mobile data collection services, and analytic solutions using automotive telematics information, as well as identity theft protection and remediation services. This segment also offers its products under various brands, including Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity, Avail, and Allstate Identity Protection. The Allstate Health and Benefits segment provides life, accident, critical illness, short-term disability, and other health insurance products; stop-loss and fully insured group health products to employers; and short-term medical and medicare supplement insurance to individuals. The Run-off Property-Liability segment offers property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. The Corporate and Other segment provides debt services, as well as non-insurance operations. It sells its products through agents, independent agents, call and contact centers, retailers, direct to consumer, wholesale partners, and affinity groups, as well as through online and mobile applications. The Allstate Corporation was founded in 1931 and is headquartered in Northbrook, Illinois.

About International General Insurance

International General Insurance Holdings Ltd. engages in the provision of specialty insurance and reinsurance solutions worldwide. The company operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance. It is involved in underwriting a portfolio of specialty risks, including energy, property, construction and engineering, ports and terminals, general aviation, political violence, professional lines, financial institutions, motor, marine liability, contingency, marine, treaty, and casualty insurance and reinsurance. The company was founded in 2001 and is based in Amman, Jordan.