Head-To-Head Contrast: Palomar (NASDAQ:PLMR) & PICC Property and Casualty (OTCMKTS:PPCCY)

PICC Property and Casualty (OTCMKTS:PPCCY – Get Free Report) and Palomar (NASDAQ:PLMR – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Institutional & Insider Ownership

90.2% of Palomar shares are held by institutional investors. 3.7% of Palomar shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for PICC Property and Casualty and Palomar, as provided by MarketBeat.com.

Palomar has a consensus price target of $162.75, suggesting a potential upside of 23.64%. Given Palomar’s stronger consensus rating and higher probable upside, analysts clearly believe Palomar is more favorable than PICC Property and Casualty.

Dividends

PICC Property and Casualty pays an annual dividend of $9.84 per share and has a dividend yield of 19.3%. Palomar pays an annual dividend of $1.80 per share and has a dividend yield of 1.4%. PICC Property and Casualty pays out 49.9% of its earnings in the form of a dividend. Palomar pays out 24.2% 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.

Earnings and Valuation

This table compares PICC Property and Casualty and Palomar”s gross revenue, earnings per share (EPS) and valuation.

Palomar has higher revenue and earnings than PICC Property and Casualty. PICC Property and Casualty is trading at a lower price-to-earnings ratio than Palomar, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares PICC Property and Casualty and Palomar’s net margins, return on equity and return on assets.

Summary

Palomar beats PICC Property and Casualty on 11 of the 13 factors compared between the two stocks.

About PICC Property and Casualty

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PICC Property and Casualty Company Limited, together with its subsidiaries, operates as a property and casualty insurance company in the People's Republic of China. It operates through Motor Vehicle, Accidental Injury and Health, Agriculture, Liability, Commercial Property, and Others segments. The company offers accidental injury and medical expenses, short-term health, homeowners, special risk, marine hull, construction, household property, cargo, credit and surety, accidental injury, and other insurance products. It also provides reinsurance, investment and funds application, insurance and claim handling agency, training, information technology and business, and property management services. The company was incorporated in 2003 and is based in Beijing, China. PICC Property and Casualty Company Limited operates as a subsidiary of The People's Insurance Company (Group) of China Limited.

About Palomar

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Palomar Holdings, Inc., a specialty insurance company, provides property and casualty insurance to residential and businesses in the United States. The company offers personal and commercial specialty property insurance products, including residential and commercial earthquake, fronting, commercial all risk, specialty homeowners, inland marine, Hawaii hurricane, and residential flood, as well as other products, such as assumed reinsurance. It markets and distributes its products through retail agents, wholesale brokers, program administrators, and carrier partnerships. The company was formerly known as GC Palomar Holdings and changed its name to Palomar Holdings, Inc. The company was incorporated in 2013 and is headquartered in La Jolla, California.