Critical Analysis: Conifer (NASDAQ: CNFR) vs. Trean Insurance Group (NASDAQ: TIG)

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Trean Insurance Group (NASDAQ: TIGGet a rating) and Conifer (NASDAQ: CNFRGet a rating) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Trean Insurance Group and Conifer, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Trean Insurance Group 0 2 1 0 2.33
Coniferous 0 0 0 0 N / A

Trean Insurance Group currently has a consensus price target of $10.00, suggesting a potential upside of 56.74%. Given Trean Insurance Group’s likely higher upside, research analysts clearly believe that Trean Insurance Group is more favorable than Conifer.

Profitability

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

Net margins Return on equity return on assets
Trean Insurance Group 9.32% 5.32% 1.53%
Coniferous 0.58% -24.66% -3.47%

Institutional and insider ownership

87.6% of Trean Insurance Group shares are held by institutional investors. By comparison, 36.9% of Conifer’s shares are held by institutional investors. 9.3% of the shares of Trean Insurance Group are held by insiders of the company. By comparison, 53.5% of Conifer’s stock is held by company insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock is poised for long-term growth.

Volatility and risk

Trean Insurance Group has a beta of 0.65, which means its stock price is 35% less volatile than the S&P 500. In comparison, Conifer has a beta of 1.14, which means its stock price is 14% more volatile than the S&P 500.

Valuation and benefits

This table compares the revenue, earnings per share (EPS) and valuation of Trean Insurance Group and Conifer.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Trean Insurance Group $217.69 million 1.50 $19.33 million $0.43 14.84
Coniferous $115.96 million 0.12 -$1.09 million $0.07 9:15 p.m.

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

Summary

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

Trean Insurance Group Company Profile (Get a rating)

Trean Insurance Group, Inc. underwrites specialty property and casualty insurance products in the United States. The Company underwrites corporate products, primarily workers’ compensation, accident and health, and medical malpractice products. It also offers a variety of services, including outgoing 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.

Conifer Company Profile (Get a rating)

Conifer logoConifer Holdings, Inc., an insurance holding company, sells property and casualty insurance products. It provides insurance coverage in specialized commercial and personal product lines. The Company underwrites a variety of specialty insurance products, including property, general liability, alcohol, automobile, home and home insurance policies. It meets the commercial insurance needs of owner-operated businesses in markets, such as hospitality, which includes restaurants, bars, taverns and bowling centers, as well as small grocery and convenience stores; artisan contractors including 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 investigation services. The company also offers specialty home insurance products, such as low-value home insurance tailored to owners of low-value homes in Illinois, Indiana, Louisiana and Texas; and wholesale agency services including commercial and personal 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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