Critical Review: Investors Title (ITIC) & Its Competitors

Investors Title (NASDAQ: ITIC) is one of 86 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it weigh in compared to its rivals? We will compare Investors Title to related businesses based on the strength of its dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Valuation and Earnings

This table compares Investors Title and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Investors Title $161.65 million $25.71 million 14.26
Investors Title Competitors $11.61 billion $1.16 billion 145.24

Investors Title’s rivals have higher revenue and earnings than Investors Title. Investors Title is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Investors Title and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Investors Title 15.90% 12.28% 8.45%
Investors Title Competitors 7.21% 1.77% 1.28%

Risk and Volatility

Investors Title has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Investors Title’s rivals have a beta of 0.85, meaning that their average stock price is 15% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Investors Title and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Investors Title 0 0 0 0 N/A
Investors Title Competitors 704 2464 2325 55 2.31

As a group, “Property & Casualty Insurance” companies have a potential downside of 1.15%. Given Investors Title’s rivals higher possible upside, analysts clearly believe Investors Title has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

41.9% of Investors Title shares are owned by institutional investors. Comparatively, 60.1% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 27.5% of Investors Title shares are owned by company insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Investors Title pays an annual dividend of $1.60 per share and has a dividend yield of 0.8%. Investors Title pays out 11.8% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.4% and pay out 22.3% of their earnings in the form of a dividend.

Summary

Investors Title rivals beat Investors Title on 7 of the 12 factors compared.

Investors Title Company Profile

Investors Title Company is an insurance holding company. The Company, through its subsidiaries, Investors Title Insurance Company (ITIC) and National Investors Title Insurance Company (NITIC), is engaged in issuance of residential and commercial title insurance, Investors Title Insurance Company (ITIC) and National Investors Title Insurance Company (NITIC). The Company also provides tax-deferred real property exchange services through its subsidiaries, Investors Title Exchange Corporation (ITEC) and Investors Title Accommodation Corporation (ITAC); investment management and trust services to individuals, trusts and other entities through its subsidiary, Investors Trust Company (Investors Trust), and management services to title insurance agencies through its subsidiary, Investors Title Management Services (ITMS). In addition, the Company operates in the issuance of residential and commercial title insurance through ITIC and NITIC segment.

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