International General Insurance (NASDAQ:IGIC) versus Horace Mann Educators (NYSE:HMN) Head-To-Head Contrast

Horace Mann Educators (NYSE:HMN) and International General Insurance (NASDAQ:IGIC) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Dividends

Horace Mann Educators pays an annual dividend of $1.40 per share and has a dividend yield of 3.3%. International General Insurance pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Horace Mann Educators pays out 35.9% of its earnings in the form of a dividend. International General Insurance pays out 7.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Horace Mann Educators has raised its dividend for 17 consecutive years and International General Insurance has raised its dividend for 2 consecutive years. Horace Mann Educators is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Horace Mann Educators has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500. Comparatively, International General Insurance has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500.

Valuation & Earnings

This table compares Horace Mann Educators and International General Insurance”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Horace Mann Educators	$1.60 billion	1.08	$162.10 million	$3.90	10.90
International General Insurance	$524.05 million	2.14	$135.15 million	$2.76	9.10

Horace Mann Educators has higher revenue and earnings than International General Insurance. International General Insurance is trading at a lower price-to-earnings ratio than Horace Mann Educators, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Horace Mann Educators and International General Insurance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Horace Mann Educators	0	1	2	1	3.00
International General Insurance	0	0	3	0	3.00

Horace Mann Educators currently has a consensus price target of $47.33, indicating a potential upside of 11.37%. International General Insurance has a consensus price target of $30.00, indicating a potential upside of 19.43%. Given International General Insurance’s higher possible upside, analysts clearly believe International General Insurance is more favorable than Horace Mann Educators.

Profitability

This table compares Horace Mann Educators and International General Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Horace Mann Educators	9.53%	13.92%	1.31%
International General Insurance	23.76%	18.36%	5.82%

Institutional and Insider Ownership

99.3% of Horace Mann Educators shares are held by institutional investors. Comparatively, 54.2% of International General Insurance shares are held by institutional investors. 4.0% of Horace Mann Educators shares are held by insiders. Comparatively, 20.1% of International General Insurance shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

International General Insurance beats Horace Mann Educators on 9 of the 17 factors compared between the two stocks.

About Horace Mann Educators

Horace Mann Educators Corporation, together with its subsidiaries, operates as an insurance holding company in the United States. The company operates through Property & Casualty, Life & Retirement, and Supplemental & Group Benefits segments. Its Property & Casualty segment offers insurance products, including private passenger auto insurance, residential home insurance, and personal umbrella insurance; and provides auto coverages including liability and collision, and property coverage for homeowners and renters. The Life & Retirement segment markets tax-qualified fixed, fixed indexed, and variable annuities; and internal revenue code for educator, which allows public school employees and employees of other tax-exempt organizations, such as not-for-profit private schools, to utilize pretax income to make periodic contributions to a qualified retirement plan. The Supplemental & Group Benefits segment offers employer-sponsored products including accident, critical illness, limited-benefit fixed indemnity insurance, term life, and short-term and long-term disability, as well as worksite direct products, such as supplemental heart, cancer, disability, and accident coverage. The company was founded in 1945 and is headquartered in Springfield, Illinois.

About International General Insurance

International General Insurance Holdings Ltd. engages in the provision of specialty insurance and reinsurance solutions worldwide. The company operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance. It is involved in underwriting a portfolio of specialty risks, including energy, property, construction and engineering, ports and terminals, general aviation, political violence, professional lines, financial institutions, motor, marine liability, contingency, marine, treaty, and casualty insurance and reinsurance. The company was founded in 2001 and is based in Amman, Jordan.