Trupanion (NASDAQ:TRUP) and AMERISAFE (NASDAQ:AMSF) Head-To-Head Comparison

Trupanion (NASDAQ:TRUP) and AMERISAFE (NASDAQ:AMSF) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Insider and Institutional Ownership

97.4% of AMERISAFE shares are owned by institutional investors. 5.4% of Trupanion shares are owned by insiders. Comparatively, 1.6% of AMERISAFE shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Trupanion and AMERISAFE”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trupanion	$1.29 billion	1.87	-$9.63 million	($0.10)	-560.50
AMERISAFE	$309.04 million	2.68	$55.44 million	$2.48	17.54

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Trupanion and AMERISAFE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trupanion	0	2	4	1	2.86
AMERISAFE	0	1	1	0	2.50

Trupanion currently has a consensus target price of $51.80, indicating a potential downside of 7.58%. AMERISAFE has a consensus target price of $59.50, indicating a potential upside of 36.78%. Given AMERISAFE’s higher possible upside, analysts clearly believe AMERISAFE is more favorable than Trupanion.

Volatility & Risk

Trupanion has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500. Comparatively, AMERISAFE has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Profitability

This table compares Trupanion and AMERISAFE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trupanion	-0.32%	-1.33%	-0.52%
AMERISAFE	15.76%	16.41%	3.87%

Summary

AMERISAFE beats Trupanion on 9 of the 15 factors compared between the two stocks.

About Trupanion

Trupanion, Inc., together with its subsidiaries, provides medical insurance for cats and dogs on a monthly subscription basis in the United States, Canada, Continental Europe, and Australia. The company operates in two segments, Subscription Business and Other Business. It serves pet owners and veterinarians. The company was formerly known as Vetinsurance International, Inc. changed its name to Trupanion, Inc. in 2013. Trupanion, Inc. was founded in 2000 and is headquartered in Seattle, Washington.

About AMERISAFE

AMERISAFE, Inc., an insurance holding company, underwrites workers’ compensation insurance in the United States. The company provides benefits to injured employees for temporary or permanent disability, death, and medical and hospital expenses. It sells its products through retail and wholesale brokers and agents; and small and mid-sized employers engaged in hazardous industries, including construction, trucking, logging and lumber, agriculture, manufacturing, telecommunications, and maritime. AMERISAFE, Inc. was incorporated in 1985 and is based in DeRidder, Louisiana.