Financial Contrast: Kemper (NYSE:KMPR) versus The Competition

Kemper (NYSE: KMPR) is one of 20 public companies in the “Multiline Insurance & Brokers” industry, but how does it weigh in compared to its competitors? We will compare Kemper to similar businesses based on the strength of its valuation, institutional ownership, profitability, dividends, risk, analyst recommendations and earnings.

Insider & Institutional Ownership

57.7% of Kemper shares are held by institutional investors. Comparatively, 66.0% of shares of all “Multiline Insurance & Brokers” companies are held by institutional investors. 0.9% of Kemper shares are held by insiders. Comparatively, 12.6% of shares of all “Multiline Insurance & Brokers” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Kemper and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kemper 0 1 0 1 3.00
Kemper Competitors 113 698 805 22 2.45

Kemper currently has a consensus target price of $55.00, indicating a potential downside of 21.60%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 2.24%. Given Kemper’s competitors higher possible upside, analysts plainly believe Kemper has less favorable growth aspects than its competitors.

Profitability

This table compares Kemper and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kemper 4.32% 4.47% 1.09%
Kemper Competitors 6.97% 11.52% 2.58%

Volatility & Risk

Kemper has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Kemper’s competitors have a beta of 1.24, suggesting that their average share price is 24% more volatile than the S&P 500.

Earnings and Valuation

This table compares Kemper and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Kemper $2.52 billion $16.80 million 31.60
Kemper Competitors $11.95 billion $575.69 million 243.56

Kemper’s competitors have higher revenue and earnings than Kemper. Kemper is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Kemper pays an annual dividend of $0.96 per share and has a dividend yield of 1.4%. Kemper pays out 43.2% of its earnings in the form of a dividend. As a group, “Multiline Insurance & Brokers” companies pay a dividend yield of 2.0% and pay out 51.0% of their earnings in the form of a dividend.

Summary

Kemper competitors beat Kemper on 12 of the 15 factors compared.

About Kemper

Kemper Corporation (Kemper) is a diversified insurance holding company. The Company, through its subsidiaries, provides automobile, homeowners, life, health and other insurance products to individuals and businesses. The Company operates through two segments: Property & Casualty Insurance, and Life & Health Insurance. The Property & Casualty Insurance segment’s products include personal automobile insurance, both preferred and nonstandard, homeowners insurance, other personal insurance and commercial automobile insurance. These products are distributed primarily through independent agents and brokers. The Life & Health Insurance segment’s products are individual life, accident, health and property insurance. These products are distributed by career agents employed by the Company and independent agents and brokers.

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