Contrasting AMERISAFE (NASDAQ:AMSF) and Ping An Insurance Co. of China (OTCMKTS:PNGAY)

AMERISAFE (NASDAQ:AMSF) and Ping An Insurance Co. of China (OTCMKTS:PNGAY) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Dividends

AMERISAFE pays an annual dividend of $1.64 per share and has a dividend yield of 7.8%. Ping An Insurance Co. of China pays an annual dividend of $0.48 per share and has a dividend yield of 3.8%. AMERISAFE pays out 76.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ping An Insurance Co. of China pays out 33.6% of its earnings in the form of a dividend. AMERISAFE has increased its dividend for 12 consecutive years. AMERISAFE is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares AMERISAFE and Ping An Insurance Co. of China”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMERISAFE	$317.25 million	1.22	$47.15 million	$2.15	9.73
Ping An Insurance Co. of China	$158.64 billion	0.73	$18.75 billion	$1.43	8.91

Ping An Insurance Co. of China has higher revenue and earnings than AMERISAFE. Ping An Insurance Co. of China is trading at a lower price-to-earnings ratio than AMERISAFE, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for AMERISAFE and Ping An Insurance Co. of China, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMERISAFE	1	2	2	0	2.20
Ping An Insurance Co. of China	0	1	0	0	2.00

AMERISAFE presently has a consensus target price of $33.33, indicating a potential upside of 59.41%. Given AMERISAFE’s stronger consensus rating and higher probable upside, analysts clearly believe AMERISAFE is more favorable than Ping An Insurance Co. of China.

Institutional and Insider Ownership

97.4% of AMERISAFE shares are owned by institutional investors. Comparatively, 0.0% of Ping An Insurance Co. of China shares are owned by institutional investors. 1.9% of AMERISAFE shares are owned by insiders. Comparatively, 0.1% of Ping An Insurance Co. of China shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares AMERISAFE and Ping An Insurance Co. of China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMERISAFE	12.10%	14.15%	3.10%
Ping An Insurance Co. of China	9.67%	8.10%	0.82%

Risk & Volatility

AMERISAFE has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Ping An Insurance Co. of China has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Summary

AMERISAFE beats Ping An Insurance Co. of China on 13 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 Ping An Insurance Co. of China

Ping An Insurance (Group) Company of China, Ltd. provides financial products and services for insurance, banking, asset management, and technology businesses in the People's Republic of China. The company operates through Life and Health Insurance; Property and Casualty Insurance; Banking; Asset Management; and Technology segments. Its Life and Health Insurance segment offers term, whole-life, endowment, annuity, investment-linked, universal life, and health care and medical insurance to individual and corporate customers. The company's Property and Casualty Insurance segment provides auto, non-auto, and accident and health insurance to individual and corporate customers. Its Banking segment undertakes loan and intermediary businesses with corporate and retail customers; and offers wealth management and credit card services to individual customers. The company's Asset Management segment provides trust products services, brokerage services, trading services, investment banking services, investment management, finance lease, and other asset management services. Its Technology segment offers financial and daily-life services through internet platforms, such as financial transaction information service, and health care service platforms. The company also provides annuity insurance, IT and business process outsourcing, real estate investment and management, futures brokerage, project investment, currency brokerage, property agency, fund raising and distribution, real estate development and leasing, and insurance agency services. In addition, it provides factoring, equity investment, logistics and warehousing, management consulting, e-commerce, and credit information services; and operates an expressway, as well as produces and sells consumer chemicals. The company was incorporated in 1988 and is based in Shenzhen, China.