Analyzing Atlantic American (AAME) & Its Competitors

Atlantic American (NASDAQ: AAME) is one of 44 public companies in the “Life insurance” industry, but how does it contrast to its rivals? We will compare Atlantic American to similar companies based on the strength of its risk, earnings, profitability, analyst recommendations, valuation, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of current recommendations for Atlantic American and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlantic American 0 0 0 0 N/A
Atlantic American Competitors 578 1990 2236 84 2.37

As a group, “Life insurance” companies have a potential upside of 17.11%. Given Atlantic American’s rivals higher possible upside, analysts clearly believe Atlantic American has less favorable growth aspects than its rivals.

Volatility & Risk

Atlantic American has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, Atlantic American’s rivals have a beta of 0.85, meaning that their average share price is 15% less volatile than the S&P 500.

Institutional and Insider Ownership

6.4% of Atlantic American shares are owned by institutional investors. Comparatively, 59.2% of shares of all “Life insurance” companies are owned by institutional investors. 80.1% of Atlantic American shares are owned by insiders. Comparatively, 14.3% of shares of all “Life insurance” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Atlantic American and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Atlantic American $195.35 million $12.17 million 6.68
Atlantic American Competitors $20.55 billion $984.37 million 4.16

Atlantic American’s rivals have higher revenue and earnings than Atlantic American. Atlantic American is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Atlantic American and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlantic American 6.42% 0.72% 0.25%
Atlantic American Competitors 2.00% 3.41% 0.56%

Dividends

Atlantic American pays an annual dividend of $0.02 per share and has a dividend yield of 0.5%. Atlantic American pays out 3.3% of its earnings in the form of a dividend. As a group, “Life insurance” companies pay a dividend yield of 1.4% and pay out 11.0% of their earnings in the form of a dividend. Atlantic American has raised its dividend for 1 consecutive years.

Summary

Atlantic American rivals beat Atlantic American on 8 of the 12 factors compared.

Atlantic American Company Profile

Atlantic American Corp. is an insurance holding company, which engages in the life, health, and property and casualty insurance industries. It operates through the following segments: American Southern, Bankers Fidelity, and Corporate & Other. The American Southern segment operates in the property and casualty insurance market. The Bankers Fidelity segment operates in the life and health insurance market. The Corporate and Other segment is from external sources. The company was founded in 1968 and is headquartered in Atlanta, GA.

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