Palomar (NASDAQ:PLMR) versus The Allstate (NYSE:ALL) Financial Review


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Palomar (NASDAQ:PLMR) and The Allstate (NYSE:ALL) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Valuation and Earnings

This table compares Palomar and The Allstate’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Palomar $113.30 million 16.99 $10.62 million $1.73 43.52
The Allstate $44.68 billion 0.81 $4.85 billion $10.43 11.43

The Allstate has higher revenue and earnings than Palomar. The Allstate 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 Palomar and The Allstate’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Palomar 11.97% 6.95% 3.98%
The Allstate 10.68% 16.70% 3.35%

Volatility & Risk

Palomar has a beta of -0.13, indicating that its stock price is 113% less volatile than the S&P 500. Comparatively, The Allstate has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Insider & Institutional Ownership

90.7% of Palomar shares are owned by institutional investors. Comparatively, 77.0% of The Allstate shares are owned by institutional investors. 7.7% of Palomar shares are owned by insiders. Comparatively, 1.8% of The Allstate shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Palomar and The Allstate, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Palomar 0 1 3 0 2.75
The Allstate 0 5 4 1 2.60

Palomar currently has a consensus target price of $97.20, indicating a potential upside of 29.10%. The Allstate has a consensus target price of $124.67, indicating a potential upside of 4.59%. Given Palomar’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Palomar is more favorable than The Allstate.

Summary

Palomar beats The Allstate on 8 of the 15 factors compared between the two stocks.

Palomar Company Profile

Palomar Holdings, Inc. provides specialty property insurance. It offers personal and commercial specialty property insurance products, including residential and commercial earthquake, specialty homeowners, commercial all-risk, Hawaii hurricane, residential flood, inland marine, assumed reinsurance, and real estate investor. The company was formerly known as GC Palomar Holdings. Palomar Holdings, Inc. was incorporated in 2013 and is headquartered in La Jolla, California.

The Allstate Company Profile

The Allstate Corporation, through its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. The company operates through Allstate Protection, Protection Services, Allstate Life, and Allstate Benefits segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; specialty auto products, including motorcycle, trailer, motor home, and off-road vehicle insurance; other personal lines products, such as renter, condominium, landlord, boat, umbrella, and manufactured home and stand-alone scheduled personal property; and commercial lines products under the Allstate and Encompass brand names. The Protection Services segment provides consumer product protection plans and related technical support for mobile phones, consumer electronics, furniture, and appliances; finance and insurance products, including vehicle service contracts, guaranteed asset protection waivers, road hazard tire and wheel, and paintless dent repair protection; roadside assistance; device and mobile data collection services; data and analytic solutions using automotive telematics information; and identity protection services. This segment offers its products under various brands including Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside Services, Arity, and Allstate Identity Protection. The Allstate Life Segment offers traditional, interest-sensitive, and variable life insurance products, as well as non-proprietary products offered by third-party providers. Its Allstate Benefits segment provides life, accident, critical illness, short-term disability, and other health insurance products. The company sells its products through call centers, agencies, financial specialists, brokers, wholesale partners, and affinity groups, as well as through online and mobile applications. The Allstate Corporation was founded in 1931 and is based in Northbrook, Illinois.

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