Financial Analysis: The Seibels Bruce Group (OTCMKTS:SBBG) versus Conifer (NASDAQ:CNFR)

Conifer (NASDAQ:CNFR) and The Seibels Bruce Group (OTCMKTS:SBBG) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Valuation and Earnings

This table compares Conifer and The Seibels Bruce Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Conifer	$96.85 million	0.15	-$25.90 million	($2.19)	-0.55
The Seibels Bruce Group	N/A	N/A	N/A	N/A	N/A

The Seibels Bruce Group has lower revenue, but higher earnings than Conifer.

Insider & Institutional Ownership

34.9% of Conifer shares are held by institutional investors. 70.4% of Conifer shares are held by insiders. Comparatively, 55.4% of The Seibels Bruce Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Conifer and The Seibels Bruce Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Conifer	-25.94%	-524.00%	-9.24%
The Seibels Bruce Group	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for Conifer and The Seibels Bruce Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Conifer	1	0	0	0	1.00
The Seibels Bruce Group	0	0	0	0	N/A

Conifer presently has a consensus target price of $0.61, suggesting a potential downside of 48.74%. Given Conifer’s higher probable upside, equities research analysts plainly believe Conifer is more favorable than The Seibels Bruce Group.

Volatility and Risk

Conifer has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, The Seibels Bruce Group has a beta of 3.8, suggesting that its stock price is 280% more volatile than the S&P 500.

About Conifer

Conifer Holdings, Inc., an insurance holding company, engages in the sale of property and casualty insurance products. The company offers insurance coverage in specialty commercial and personal product lines. It also underwrites various specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. The company serves the commercial insurance needs of owner-operated businesses in the markets, such as hospitality, which includes restaurants, bars, taverns, and bowling centers, as well as small grocery and convenience stores; artisan contractors comprising plumbers, painters, carpenters, electricians, and other independent contractors; and security service providers, including companies that provide security guard services, security alarm products and services, and private investigative services. It offers specialty homeowners insurance products, such as low- value dwelling insurance tailored for owners of lower valued homes in Illinois, Indiana, Louisiana, and Texas; and wholesale agency services comprising commercial and personal lines insurance products for its insurance company subsidiaries, as well as third party insurers. Conifer Holdings, Inc. markets and sells its insurance products through a network of independent agents in 50 states in the United States. The company was incorporated in 2009 and is headquartered in Troy, Michigan.

About The Seibels Bruce Group

The Seibels Bruce Group, Inc. provides processing, technology, and claims solutions to the property and casualty insurance industry. The company offers processing solutions for coastal markets; business process outsourcing; claims administration solutions; information technology outsourcing; and professional services. It also provides technology solutions, such as IPX enterprise insurance suite, CPX claims management system, FNOL first notice of loss, and reinspection processing xpert solutions; and claims solutions, including third party administration, catastrophe management, first notice of loss, multi-line adjusting and examination, reinspection, and subrogation/salvage services. The company was founded in 1869 and is based in Columbia, South Carolina.