Contrasting Atlas Financial (OTCMKTS:AFHIF) and The Allstate (NYSE:ALL)

Atlas Financial (OTCMKTS:AFHIF) and The Allstate (NYSE:ALL) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Atlas Financial and The Allstate’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlas Financial -123.84% N/A -10.54%
The Allstate 7.73% 21.16% 4.37%

Institutional and Insider Ownership

74.7% of The Allstate shares are owned by institutional investors. 15.1% of Atlas Financial shares are owned by insiders. Comparatively, 1.6% of The Allstate 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.

Valuation & Earnings

This table compares Atlas Financial and The Allstate’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlas Financial $9.55 million 0.66 -$12.73 million N/A N/A
The Allstate $44.79 billion 0.88 $5.58 billion $14.73 8.92

The Allstate has higher revenue and earnings than Atlas Financial.

Analyst Recommendations

This is a summary of current ratings and target prices for Atlas Financial and The Allstate, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlas Financial 0 0 0 0 N/A
The Allstate 0 7 6 1 2.57

The Allstate has a consensus target price of $135.42, suggesting a potential upside of 3.05%. Given The Allstate’s higher probable upside, analysts clearly believe The Allstate is more favorable than Atlas Financial.

Volatility and Risk

Atlas Financial has a beta of 3.53, suggesting that its share price is 253% more volatile than the S&P 500. Comparatively, The Allstate has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Summary

The Allstate beats Atlas Financial on 10 of the 12 factors compared between the two stocks.

Atlas Financial Company Profile

Atlas Financial Holdings, Inc., through its subsidiary, Anchor Group Management, Inc., engages in generating, underwriting, and servicing of commercial automobile insurance in the United States. The company's automobile insurance products provide insurance coverage in three primary areas, including liability, accident benefits, and physical damage. It focuses on the light commercial automobile sector, including taxi cabs, non-emergency para-transit, limousine, livery, and business autos. The company distributes its insurance products through a network of independent retail agents. Atlas Financial Holdings, Inc. is headquartered in Schaumburg, Illinois.

The Allstate Company Profile

The Allstate Corporation, through its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. The company operates through Allstate Protection, Protection Services, Allstate Life, and Allstate Benefits segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; specialty auto products, including motorcycle, trailer, motor home, and off-road vehicle insurance; other personal lines products, such as renter, condominium, landlord, boat, umbrella, and manufactured home and stand-alone scheduled personal property; and commercial lines products under the Allstate and Encompass brand names. The Protection Services segment provides consumer product protection plans and related technical support for mobile phones, consumer electronics, furniture, and appliances; finance and insurance products, including vehicle service contracts, guaranteed asset protection waivers, road hazard tire and wheel, and paintless dent repair protection; roadside assistance; device and mobile data collection services; data and analytic solutions using automotive telematics information; and identity protection services. This segment offers its products under various brands including Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside Services, Arity, and Allstate Identity Protection. The Allstate Life Segment offers traditional, interest-sensitive, and variable life insurance products, as well as non-proprietary products offered by third-party providers. Its Allstate Benefits segment provides life, accident, critical illness, short-term disability, and other health insurance products. The company sells its products through call centers, agencies, financial specialists, brokers, wholesale partners, and affinity groups, as well as through online and mobile applications. The Allstate Corporation was founded in 1931 and is based in Northbrook, Illinois.

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