Head-To-Head Survey: RLI (NYSE:RLI) & Tian Ruixiang (NASDAQ:TIRX)

RLI (NYSE:RLI) and Tian Ruixiang (NASDAQ:TIRX) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for RLI and Tian Ruixiang, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RLI	1	5	1	0	2.00
Tian Ruixiang	1	0	0	0	1.00

RLI presently has a consensus price target of $63.00, indicating a potential downside of 5.46%. Given RLI’s stronger consensus rating and higher possible upside, equities analysts clearly believe RLI is more favorable than Tian Ruixiang.

Profitability

This table compares RLI and Tian Ruixiang’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RLI	22.22%	17.61%	5.03%
Tian Ruixiang	N/A	N/A	N/A

Insider & Institutional Ownership

77.9% of RLI shares are owned by institutional investors. Comparatively, 10.7% of Tian Ruixiang shares are owned by institutional investors. 2.4% of RLI shares are owned by insiders. Comparatively, 39.6% of Tian Ruixiang shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares RLI and Tian Ruixiang”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RLI	$1.88 billion	3.25	$403.34 million	$4.76	14.00
Tian Ruixiang	$5.86 million	0.38	-$3.99 million	N/A	N/A

RLI has higher revenue and earnings than Tian Ruixiang.

Volatility and Risk

RLI has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, Tian Ruixiang has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.

Summary

RLI beats Tian Ruixiang on 11 of the 12 factors compared between the two stocks.

About RLI

RLI Corp., an insurance holding company, underwrites property and casualty insurance. Its Casualty segment provides commercial and personal coverage products; and general liability products, such as coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, and mercantile. It also offers coverages for security guards and environmental liability for underground storage tanks, contractors and asbestos, and environmental remediation specialists; and professional liability coverages for errors and omission coverage for small to medium-sized design, technical, computer, and miscellaneous professionals. This segment provides commercial automobile liability and physical damage insurance to local, intermediate and long haul truckers, public transportation entities, and other types of specialty commercial automobile risks; incidental and related insurance coverages; inland marine coverages; management liability coverages, such as directors and officers liability insurance, fiduciary liability and coverages, employment practice liability, and for various classes of risks, including public and private businesses; and home business insurance products. The company's Property segment offers commercial property, cargo, hull, protection and indemnity, marine liability, inland marine, homeowners' and dwelling fire, and other property insurance products. Its Surety segment offers commercial surety bonds for medium to large-sized businesses; small bonds for businesses and individuals; and bonds for small to medium-sized contractors. The company also engages in various reinsurance coverages. It markets its products through branch offices, wholesale and retail brokers, carrier partners, and underwriting and independent agents. RLI Corp. was incorporated in 1965 and is headquartered in Peoria, Illinois.

About Tian Ruixiang

Tian Ruixiang Holdings Ltd, together its subsidiaries, operates as an insurance broker in China and the United States. It distributes a range of insurance products, including property and casualty insurance, such as automobile, commercial property, liability, and accidental insurance; and life insurance comprising individual and group life insurances, as well as health and miscellaneous insurance. It serves individual or institutional customers. The company was founded in 2010 and is headquartered in Beijing, China.