Kingsway Financial Services (NYSE:KWY) vs. Equitable (NYSE:EQH) Head-To-Head Comparison

Equitable (NYSE:EQH) and Kingsway Financial Services (NYSE:KWY) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Valuation and Earnings

This table compares Equitable and Kingsway Financial Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equitable	$11.66 billion	1.24	-$1.38 billion	($3.31)	-16.07
Kingsway Financial Services	$134.97 million	2.04	-$10.73 million	($0.30)	-31.67

Kingsway Financial Services has lower revenue, but higher earnings than Equitable. Kingsway Financial Services is trading at a lower price-to-earnings ratio than Equitable, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Equitable and Kingsway Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equitable	-8.72%	511.35%	0.61%
Kingsway Financial Services	-6.69%	-61.62%	-4.45%

Risk and Volatility

Equitable has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Kingsway Financial Services has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Equitable and Kingsway Financial Services, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equitable	0	3	10	1	2.86
Kingsway Financial Services	1	0	0	0	1.00

Equitable presently has a consensus target price of $63.18, indicating a potential upside of 18.81%. Given Equitable’s stronger consensus rating and higher possible upside, equities analysts plainly believe Equitable is more favorable than Kingsway Financial Services.

Institutional and Insider Ownership

92.7% of Equitable shares are owned by institutional investors. Comparatively, 72.4% of Kingsway Financial Services shares are owned by institutional investors. 1.0% of Equitable shares are owned by company insiders. Comparatively, 41.4% of Kingsway Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Equitable beats Kingsway Financial Services on 10 of the 15 factors compared between the two stocks.

About Equitable

Equitable Holdings, Inc., together with its consolidated subsidiaries, operates as a diversified financial services company worldwide. The company operates through six segments: Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management, and Legacy. The Individual Retirement segment offers a suite of variable annuity products primarily to affluent and high net worth individuals. The Group Retirement segment provides tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses. The Investment Management and Research segment offers diversified investment management, research, and related services to various clients through institutional. The Protection Solutions segment provides life insurance products, such as VUL insurance and IUL insurance, term life, and employee benefits business, such as dental, vision, life, as well as short- and long-term disability insurance products to small and medium-sized businesses. The Wealth Management segment offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products. The Legacy segment consists of the capital intensive fixed-rate GMxB business that includes ROP death benefits. The company was formerly known as AXA Equitable Holdings, Inc. and changed its name to Equitable Holdings, Inc. in January 2020. Equitable Holdings, Inc. was founded in 1859 and is based in New York, New York.

About Kingsway Financial Services

Kingsway Financial Services Inc., through its subsidiaries, engages in the extended warranty business services, asset management, and real estate businesses. The company operates through three segments: Extended Warranty, Leased Real Estate, and Kingsway Search Xcelerator. The Extended Warranty segment markets, sells, and administers vehicle service agreements and related products for new and used automobiles, motorcycles, and ATVs. This segment also sells new home warranty products, as well as offers uninsured warrant administration services to homebuilders and homeowners; markets and distributes warranty products to manufacturers, distributors, and installers of heating, ventilation and air conditioning, standby generator, commercial LED lighting, and commercial refrigeration equipment; and provides equipment breakdown and maintenance support services to companies. The Leased Real Estate segment owns a parcel of real property consisting of approximately 192 acres located in the State of Texas. The Kingsway Search Xcelerator offers outsourced finance and human resources consulting services, including operational accounting, such as bookkeeping, accounting, financial reporting, and analysis and strategic finance services; technical accounting comprising initial public offerings, SEC reporting, and international consolidation services; human resources, workforce management, and compliance support services; and advisory services. The company offers its products and services through credit unions, dealers, homebuilders, and consumers. Kingsway Financial Services Inc. was incorporated in 1989 and is based in Itasca, Illinois.