AMERISAFE (NASDAQ:AMSF – Get Free Report) and Fidelis Insurance (NYSE:FIHL – Get Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.
Profitability
This table compares AMERISAFE and Fidelis Insurance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AMERISAFE | 19.49% | 16.50% | 4.02% |
| Fidelis Insurance | 20.17% | 15.27% | 3.36% |
Earnings and Valuation
This table compares AMERISAFE and Fidelis Insurance”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AMERISAFE | $315.18 million | 3.55 | $62.11 million | $3.20 | 18.34 |
| Fidelis Insurance | $2.29 billion | 1.05 | $2.13 billion | $3.96 | 5.15 |
Dividends
AMERISAFE pays an annual dividend of $1.48 per share and has a dividend yield of 2.5%. Fidelis Insurance pays an annual dividend of $0.40 per share and has a dividend yield of 2.0%. AMERISAFE pays out 46.3% of its earnings in the form of a dividend. Fidelis Insurance pays out 10.1% 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. AMERISAFE has increased its dividend for 11 consecutive years. AMERISAFE is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
AMERISAFE has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500. Comparatively, Fidelis Insurance has a beta of -0.01, indicating that its stock price is 101% less volatile than the S&P 500.
Insider and Institutional Ownership
97.4% of AMERISAFE shares are owned by institutional investors. Comparatively, 82.0% of Fidelis Insurance shares are owned by institutional investors. 1.5% of AMERISAFE shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and target prices for AMERISAFE and Fidelis Insurance, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AMERISAFE | 0 | 1 | 1 | 0 | 2.50 |
| Fidelis Insurance | 0 | 4 | 3 | 0 | 2.43 |
AMERISAFE presently has a consensus price target of $59.50, suggesting a potential upside of 1.38%. Fidelis Insurance has a consensus price target of $20.69, suggesting a potential upside of 1.46%. Given Fidelis Insurance’s higher possible upside, analysts plainly believe Fidelis Insurance is more favorable than AMERISAFE.
Summary
AMERISAFE beats Fidelis Insurance on 10 of the 17 factors compared between the two stocks.
About AMERISAFE
AMERISAFE, Inc., an insurance holding company, underwrites workers’ compensation insurance in the United States. The company provides benefits to injured employees for temporary or permanent disability, death, and medical and hospital expenses. It sells its products through retail and wholesale brokers and agents; and small and mid-sized employers engaged in hazardous industries, including construction, trucking, logging and lumber, agriculture, manufacturing, telecommunications, and maritime. AMERISAFE, Inc. was incorporated in 1985 and is based in DeRidder, Louisiana.
About Fidelis Insurance
Fidelis Insurance Holdings Limited, a specialty insurer, provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, as well as other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.
Receive News & Ratings for AMERISAFE Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AMERISAFE and related companies with MarketBeat.com's FREE daily email newsletter.
