Contrasting Trean Insurance Group (NASDAQ:TIG) and Conifer (NASDAQ:CNFR)

Trean Insurance Group (NASDAQ:TIGGet Rating) and Conifer (NASDAQ:CNFRGet Rating) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Earnings & Valuation

This table compares Trean Insurance Group and Conifer’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trean Insurance Group $217.69 million 1.58 $19.33 million $0.43 15.63
Conifer $115.96 million 0.14 -$1.09 million $0.07 24.19

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Trean Insurance Group and Conifer, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trean Insurance Group 0 2 1 0 2.33
Conifer 0 0 0 0 N/A

Trean Insurance Group currently has a consensus target price of $10.00, indicating a potential upside of 48.81%. Given Trean Insurance Group’s higher probable upside, equities research analysts plainly believe Trean Insurance Group is more favorable than Conifer.

Insider & Institutional Ownership

87.6% of Trean Insurance Group shares are held by institutional investors. Comparatively, 36.9% of Conifer shares are held by institutional investors. 9.3% of Trean Insurance Group shares are held by company insiders. Comparatively, 53.5% of Conifer shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Trean Insurance Group has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Conifer has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares Trean Insurance Group and Conifer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trean Insurance Group 9.32% 5.32% 1.53%
Conifer 0.58% -24.66% -3.47%

Summary

Trean Insurance Group beats Conifer on 10 of the 13 factors compared between the two stocks.

About Trean Insurance Group (Get Rating)

Trean Insurance Group, Inc. underwrites specialty casualty insurance products in the United States. The company underwrites business, predominantly workers' compensation, accident and health, and medical professional liability products. It also offers a variety of services, including issuing carrier, claims administration, and reinsurance brokerage services. The company offers its products through program partners and managing general agents. Trean Insurance Group, Inc. was founded in 1996 and is based in Wayzata, Minnesota.

About Conifer (Get Rating)

Conifer Holdings, Inc., an insurance holding company, engages in the sale of property and casualty insurance products. It offers insurance coverage in specialty commercial and personal product lines. The company underwrites various specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. It serves the commercial insurance needs of owner-operated businesses in the markets, such as hospitality, which includes restaurants, bars, taverns, and bowling centers, as well as small grocery and convenience stores; artisan contractors comprising plumbers, painters, carpenters, electricians, and other independent contractors; and security service providers, including companies that provide security guard services, security alarm products and services, and private investigative services. The company also offers specialty homeowners insurance products, such as low- value dwelling insurance tailored for owners of lower valued homes in Illinois, Indiana, Louisiana, and Texas; and wholesale agency services comprising commercial and personal lines insurance products for its insurance company subsidiaries, as well as third party insurers. Conifer Holdings, Inc. markets and sells its insurance products through a network of approximately 4,600 independent agents in 50 states in the United States. The company was incorporated in 2009 and is headquartered in Birmingham, Michigan.

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