Comparing Kemper Corporation (KMPR) and Its Competitors

Kemper Corporation (NYSE: KMPR) is one of 22 publicly-traded companies in the “Multiline Insurance & Brokers” industry, but how does it weigh in compared to its peers? We will compare Kemper Corporation to similar businesses based on the strength of its dividends, earnings, risk, profitability, valuation, institutional ownership and analyst recommendations.

Volatility and Risk

Kemper Corporation has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Kemper Corporation’s peers have a beta of 1.39, suggesting that their average stock price is 39% more volatile than the S&P 500.

Dividends

Kemper Corporation pays an annual dividend of $0.96 per share and has a dividend yield of 1.4%. Kemper Corporation pays out 43.2% of its earnings in the form of a dividend. As a group, “Multiline Insurance & Brokers” companies pay a dividend yield of 2.0% and pay out 49.7% of their earnings in the form of a dividend.

Institutional and Insider Ownership

57.1% of Kemper Corporation shares are owned by institutional investors. Comparatively, 62.2% of shares of all “Multiline Insurance & Brokers” companies are owned by institutional investors. 0.9% of Kemper Corporation shares are owned by company insiders. Comparatively, 15.5% of shares of all “Multiline Insurance & Brokers” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Kemper Corporation and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kemper Corporation 0 1 0 1 3.00
Kemper Corporation Competitors 112 796 845 21 2.44

Kemper Corporation currently has a consensus price target of $55.00, suggesting a potential downside of 17.04%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 2.94%. Given Kemper Corporation’s peers higher possible upside, analysts clearly believe Kemper Corporation has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Kemper Corporation and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Kemper Corporation $2.52 billion $16.80 million 29.86
Kemper Corporation Competitors $11.13 billion $534.17 million 144.16

Kemper Corporation’s peers have higher revenue and earnings than Kemper Corporation. Kemper Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Kemper Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kemper Corporation 4.32% 4.47% 1.09%
Kemper Corporation Competitors 6.11% 11.12% 2.51%

Summary

Kemper Corporation peers beat Kemper Corporation on 12 of the 15 factors compared.

About Kemper Corporation

Kemper Corporation (Kemper) is a diversified insurance holding company. The Company, through its subsidiaries, provides automobile, homeowners, life, health and other insurance products to individuals and businesses. The Company operates through two segments: Property & Casualty Insurance, and Life & Health Insurance. The Property & Casualty Insurance segment’s products include personal automobile insurance, both preferred and nonstandard, homeowners insurance, other personal insurance and commercial automobile insurance. These products are distributed primarily through independent agents and brokers. The Life & Health Insurance segment’s products are individual life, accident, health and property insurance. These products are distributed by career agents employed by the Company and independent agents and brokers.

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