Citizens (NYSE:CIA) and National Security Group (NASDAQ:NSEC) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Insider & Institutional Ownership
22.3% of Citizens shares are held by institutional investors. Comparatively, 3.3% of National Security Group shares are held by institutional investors. 0.1% of Citizens shares are held by insiders. Comparatively, 37.9% of National Security Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Citizens and National Security Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Security Group||3.83%||7.05%||2.26%|
Risk and Volatility
Citizens has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, National Security Group has a beta of 0.02, indicating that its stock price is 98% less volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Citizens and National Security Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Security Group||0||0||0||0||N/A|
Citizens presently has a consensus target price of $1.90, suggesting a potential downside of 72.86%. Given Citizens’ higher probable upside, research analysts plainly believe Citizens is more favorable than National Security Group.
National Security Group pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. Citizens does not pay a dividend.
Earnings & Valuation
This table compares Citizens and National Security Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Citizens||$252.62 million||1.39||-$38.12 million||N/A||N/A|
|National Security Group||$65.64 million||0.49||-$1.20 million||N/A||N/A|
National Security Group has lower revenue, but higher earnings than Citizens.
Citizens, Inc., through its subsidiaries, provides life insurance products in the United States and internationally. It operates through two segments, Life Insurance and Home Service Insurance. The Life Insurance segment offers ordinary whole life, burial insurance, pre-need policies, and accident and health related policies, as well as credit life insurance and final expense policies to middle and lower income families, and individuals in the Midwest and Southern United States; and whole life and endowment policies to international residents. This segment offers its products through third-party marketing organizations and independent marketing consultants. The Home Service Insurance segment provides pre-need, final expense, and ordinary and industrial life insurance services; and annuities, as well as limited liability property policies to middle and lower income individuals in Louisiana, Mississippi, and Arkansas. This segment markets its products through funeral homes and independent agents, as well as through a home service marketing distribution system. Citizens, Inc. was founded in 1969 and is headquartered in Austin, Texas.
About National Security Group
The National Security Group, Inc., an insurance holding company, provides insurance products and services in the United States. The company operates through two segments, Property and Casualty Insurance, and Life Insurance. Its Property and Casualty Insurance segment primarily underwrites home insurance coverage with primary lines of business consisting of dwelling fire and extended coverage, mobile homeowners, and other liability insurance services in Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, Oklahoma, South Carolina, Tennessee, and West Virginia, as well as operates on a surplus lines basis in the state of Louisiana. The company's Life Insurance segment offers ordinary life, accident and health, supplemental hospital, and cancer insurance products in Alabama, Florida, Georgia, Mississippi, South Carolina, Tennessee, and Texas. It distributes its products through independent agents, home service agents, and brokers. The National Security Group, Inc. was founded in 1947 and is based in Elba, Alabama.
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