Financial Contrast: Kemper (NYSE:KMPR) and AA (OTCMKTS:AATDF)

AA (OTCMKTS:AATDF) and Kemper (NYSE:KMPR) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Insider and Institutional Ownership

86.2% of Kemper shares are owned by institutional investors. 0.8% of Kemper shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for AA and Kemper, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AA	0	0	0	0	0.00
Kemper	2	5	1	0	1.88

Kemper has a consensus price target of $56.50, suggesting a potential upside of 74.84%. Given Kemper’s stronger consensus rating and higher probable upside, analysts clearly believe Kemper is more favorable than AA.

Profitability

This table compares AA and Kemper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AA	N/A	N/A	N/A
Kemper	2.99%	8.02%	1.80%

Valuation & Earnings

This table compares AA and Kemper”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AA	N/A	N/A	N/A	N/A	N/A
Kemper	$4.79 billion	0.40	$143.30 million	$2.19	14.76

Kemper has higher revenue and earnings than AA.

Summary

Kemper beats AA on 9 of the 9 factors compared between the two stocks.

About AA

AA plc provides roadside assistance, insurance, and driving services in the United Kingdom. It operates through two segments, Roadside and Insurance. The company offers breakdowns cover for cars, motorcycles, caravans, vans, and towing; car, motorbike, van, and caravan insurance; and loans, savings, mortgage, travel currency card, insurance, and credit card products. It also provides home, content, building, pet, and holiday home insurance products; and travel services. In addition, the company offers driving advisory services, such as child safety, fuel and environment, legal advisory, service and repair, safety, security, and driving cost and other services; car and MOT services; and financial services, such as personal loans, car loans, home improvement loans, debt consolidation loans, wedding loans, loan management, savings, credit cards, and online security services, as well as reinsurance services. It serves fleet and leasing companies. The company was founded in 1905 and is headquartered in Basingstoke, the United Kingdom.

About Kemper

Kemper Corporation, a diversified insurance holding company, engages in the provision of insurance products to individuals and businesses in the United States. The company operates through three segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance, and Life & Health Insurance. It provides preferred and specialty automobile, homeowners, renters, fire, umbrella, general liability, and various other property and casualty insurance to individuals, as well as commercial automobile insurance to businesses. The company also offers life insurance, including permanent and term insurance; and supplemental accident and health insurance products, such as Medicare supplement insurance, fixed hospital indemnity, home health care, specified disease, and accident-only plans to individuals in rural, suburban, and urban areas. It distributes its products through independent agents and brokers. The company was formerly known as Unitrin, Inc. and changed its name to Kemper Corporation in August 2011. Kemper Corporation was incorporated in 1990 and is headquartered in Chicago, Illinois.