Critical Survey: The Seibels Bruce Group (OTCMKTS:SBBG) and Conifer (NASDAQ:CNFR)

The Seibels Bruce Group (OTCMKTS:SBBG) and Conifer (NASDAQ:CNFR) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings for The Seibels Bruce Group and Conifer, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Seibels Bruce Group	0	0	0	0	N/A
Conifer	1	0	0	0	1.00

Conifer has a consensus target price of $0.61, suggesting a potential downside of 50.41%. Given Conifer’s higher possible upside, analysts clearly believe Conifer is more favorable than The Seibels Bruce Group.

Volatility and Risk

The Seibels Bruce Group has a beta of 3.8, meaning that its share price is 280% more volatile than the S&P 500. Comparatively, Conifer has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Profitability

This table compares The Seibels Bruce Group and Conifer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Seibels Bruce Group	N/A	N/A	N/A
Conifer	-25.94%	-524.00%	-9.24%

Valuation & Earnings

This table compares The Seibels Bruce Group and Conifer”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Seibels Bruce Group	N/A	N/A	N/A	N/A	N/A
Conifer	$96.85 million	0.16	-$25.90 million	($2.19)	-0.56

The Seibels Bruce Group has higher earnings, but lower revenue than Conifer.

Institutional and Insider Ownership

34.9% of Conifer shares are owned by institutional investors. 55.4% of The Seibels Bruce Group shares are owned by company insiders. Comparatively, 70.4% of Conifer shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

About The Seibels Bruce Group

The Seibels Bruce Group, Inc. provides processing, technology, and claims solutions to the property and casualty insurance industry. The company offers processing solutions for coastal markets; business process outsourcing; claims administration solutions; information technology outsourcing; and professional services. It also provides technology solutions, such as IPX enterprise insurance suite, CPX claims management system, FNOL first notice of loss, and reinspection processing xpert solutions; and claims solutions, including third party administration, catastrophe management, first notice of loss, multi-line adjusting and examination, reinspection, and subrogation/salvage services. The company was founded in 1869 and is based in Columbia, South Carolina.

About Conifer

Conifer Holdings, Inc., an insurance holding company, engages in the sale of property and casualty insurance products. The company offers insurance coverage in specialty commercial and personal product lines. It also underwrites various specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. The company 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. It 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 independent agents in 50 states in the United States. The company was incorporated in 2009 and is headquartered in Troy, Michigan.