Kemper Corporation (KMPR) vs Stewart Information Services Corporation (STC)

Kemper Corporation and Stewart Information Services Corporation are both Insurance Property & Casualty companies. Stewart Information Services Corporation is the larger, with a market value of $1.8B against $1.5B — 1.2× the size. Kemper Corporation has negative trailing earnings, so its P/E is not meaningful; Stewart Information Services Corporation trades at 13.0×. Stewart Information Services Corporation grew revenue faster over the last twelve months: 22.5% against −4.46%. Stewart Information Services Corporation has the higher net margin (4.12% vs −10.8%) and the higher return on invested capital (9.12% vs −9.97%). Both pay a dividend; Stewart Information Services Corporation yields more (3.10% vs 2.16%). Across the 22 metrics below, Stewart Information Services Corporation leads on 18 and Kemper Corporation on 4.

Valuation

Metric KMPR STC Insurance Property & Casualty median
P/E n/m 12.98 10.29
P/S 0.33 0.55 1.17
P/B 0.68 1.08 1.83
Price to free cash flow 37.08 12.24 7.48
EV/EBITDA 43.77 6.01 7.49
EV/Sales 0.52 0.67 1.13
Earnings yield (33.18%) 7.70% 9.50%
Free cash flow yield 2.70% 8.17% 13.29%

Profitability

Metric KMPR STC Insurance Property & Casualty median
Gross margin (0.55%) 64.35% 41.16%
Operating margin (10.61%) 9.19% 15.09%
Net margin (10.84%) 4.12% 11.51%
Free cash flow margin 8.68% 4.50% 17.59%
Return on equity (19.34%) 8.64% 18.19%
Return on assets (4.04%) 4.44% 3.74%
Return on invested capital (9.97%) 9.12% 12.06%

Growth

Metric KMPR STC Insurance Property & Casualty median
Revenue growth (TTM) (4.46%) 22.49% 8.69%
EPS growth (last fiscal year) (53.36%) 55.17% —
Revenue growth, 5-year CAGR (1.65%) 5.01% 9.23%
Net income growth, 5-year CAGR (18.96%) (5.70%) 10.09%

Health

Metric KMPR STC Insurance Property & Casualty median
Debt to equity 0.43 0.39 0.25
Current ratio 0.14 1.81 0.42
Net debt to EBITDA 2.92 0.99 0.08

Dividend

Metric KMPR STC Insurance Property & Casualty median
Dividend yield 2.16% 3.10% 2.79%
Payout ratio 0.99 0.97 0.27

Size

Metric KMPR STC Insurance Property & Casualty median
Market cap 1.48b 1.82b 2.44b

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