Critical Survey: NI (NODK) vs. Its Peers

NI (NASDAQ: NODK) is one of 94 publicly-traded companies in the “Fire, marine, & casualty insurance” industry, but how does it contrast to its peers? We will compare NI to similar companies based on the strength of its earnings, valuation, institutional ownership, risk, analyst recommendations, profitability and dividends.

Insider and Institutional Ownership

24.1% of NI shares are owned by institutional investors. Comparatively, 57.7% of shares of all “Fire, marine, & casualty insurance” companies are owned by institutional investors. 1.0% of NI shares are owned by company insiders. Comparatively, 13.0% of shares of all “Fire, marine, & casualty insurance” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares NI and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NI 7.41% 6.84% 3.61%
NI Competitors 6.35% 3.26% 0.93%

Risk & Volatility

NI has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, NI’s peers have a beta of 0.80, suggesting that their average stock price is 20% less volatile than the S&P 500.

Valuation and Earnings

This table compares NI and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
NI $306.36 million $40.39 million 17.56
NI Competitors $11.86 billion $1.35 billion 79.03

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

Analyst Ratings

This is a breakdown of recent recommendations for NI and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NI 0 0 0 0 N/A
NI Competitors 672 2980 2658 144 2.35

As a group, “Fire, marine, & casualty insurance” companies have a potential upside of 12.95%. Given NI’s peers higher possible upside, analysts plainly believe NI has less favorable growth aspects than its peers.

Summary

NI peers beat NI on 7 of the 10 factors compared.

NI Company Profile

NI Holdings, Inc. engages in the provision of insurance products and services through its subsidiaries. It operates through the following segments: Private Passenger Auto Insurance, Non-Standard Auto Insurance, Home and Farm Insurance, Crop Insurance, Commercial Insurance, and All Other. The Private Passenger Auto Insurance segment offers protection against liability for bodily injury, property damage arising from automobile accidents, and protection against loss from damage to automobiles owned by the insured. The Non-Standard Auto Insurance segment focuses on minimum-limit auto liability coverage. The Home and Farm Insurance segment consists coverage for damage to buildings, equipment, and contents for a variety of perils, including fire, lightning, wind, hail, and theft. The Crop Insurance segment covers crop hail and multi-peril crop insurance policies. The All Other segment captures remaining insurance coverages assumed reinsurance lines of business. The company was founded on March 13, 2017 and is headquartered in Fargo, ND.

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