Critical Survey: Palomar (NASDAQ:PLMR) and Protective Insurance (NASDAQ:PTVCA)

Protective Insurance (NASDAQ:PTVCA) and Palomar (NASDAQ:PLMR) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Earnings and Valuation

This table compares Protective Insurance and Palomar’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Protective Insurance $439.17 million 0.56 -$34.08 million N/A N/A
Palomar N/A N/A N/A N/A N/A

Palomar has lower revenue, but higher earnings than Protective Insurance.

Profitability

This table compares Protective Insurance and Palomar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Protective Insurance -6.98% -5.19% -1.34%
Palomar N/A N/A N/A

Analyst Ratings

This is a breakdown of current ratings and price targets for Protective Insurance and Palomar, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Protective Insurance 0 0 0 0 N/A
Palomar 0 1 5 0 2.83

Palomar has a consensus price target of $24.50, suggesting a potential downside of 7.37%. Given Palomar’s higher possible upside, analysts plainly believe Palomar is more favorable than Protective Insurance.

Dividends

Protective Insurance pays an annual dividend of $0.40 per share and has a dividend yield of 2.4%. Palomar does not pay a dividend.

Institutional & Insider Ownership

3.8% of Protective Insurance shares are owned by institutional investors. 28.2% of Protective Insurance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Palomar beats Protective Insurance on 5 of the 9 factors compared between the two stocks.

About Protective Insurance

Protective Insurance Corporation, through its subsidiaries, engages in marketing and underwriting property and casualty insurance products. The company offers a range of fleet transportation insurance products, including commercial motor vehicle liability, physical damage, and general liability insurance; workers compensation insurance; medical and indemnity insurance products; non-trucking motor vehicle liability insurance; fidelity and surety bonds; and inland marine products consisting of cargo insurance. It also provides various additional services, such as risk surveys and analyses, safety program design and monitoring, government compliance assistance, loss control, and cost studies; research, development, and consultation in connection with new insurance programs that comprise development of systems to assist customers in monitoring their accident data; and claims handling services to clients with self-insurance programs. It serves trucking and public transportation fleets, as well as independent contractors in the trucking industry. The company primarily operates in the United States, Canada, Bermuda, and Puerto Rico. Protective Insurance Corporation was founded in 1930 and is headquartered in Carmel, Indiana.

About Palomar

There is no company description available for Palomar Holdings Inc.

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