Tiptree Financial (NASDAQ:TIPT) vs. NI (NASDAQ:NODK) Financial Survey

Tiptree Financial (NASDAQ:TIPT) and NI (NASDAQ:NODK) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares Tiptree Financial and NI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tiptree Financial	N/A	-2.21%	-0.46%
NI	2.93%	3.18%	1.50%

Earnings and Valuation

This table compares Tiptree Financial and NI”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tiptree Financial	$490,000.00	1,357.28	$34.93 million	$10.82	1.65
NI	$267.39 million	1.20	-$10.41 million	$0.38	41.53

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

Volatility and Risk

Tiptree Financial has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, NI has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Tiptree Financial and NI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tiptree Financial	0	1	0	0	2.00
NI	0	1	0	0	2.00

Insider & Institutional Ownership

37.8% of Tiptree Financial shares are owned by institutional investors. Comparatively, 21.9% of NI shares are owned by institutional investors. 31.9% of Tiptree Financial shares are owned by insiders. Comparatively, 1.0% of NI shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Tiptree Financial beats NI on 6 of the 11 factors compared between the two stocks.

About Tiptree Financial

Tiptree Inc., through its subsidiaries, provides specialty insurance products and related services primarily in the United States. It operates through two segments: Insurance and Mortgage. The company offers niche; commercial lines insurance products, including professional liability, general liability, contractual liability protection, property and other short-tail, and alternative risks insurance products; and personal lines insurance products, such as credit protection surrounding loan payments. It also provides auto and consumer warranty programs, including mobile devices, consumer electronics, appliances, furniture; and vehicle service contracts, GAP, and ancillary products; as well as premium or warranty contract financing services, lead generation support, and business process outsourcing services. In addition, the company offers mortgage loans for institutional investors; asset management services; and maritime shipping and asset management services, as well as invests in shares. It markets its products through a network of independent insurance agents, consumer finance companies, online retailers, auto dealers, and regional big box retailers. The company was formerly known as Tiptree Financial Inc. and changed its name to Tiptree Inc. in December 2016. Tiptree Inc. was founded in 1978 and is headquartered in Greenwich, Connecticut.

About NI

NI Holdings, Inc. underwrites property and casualty insurance products in the United States. Its products include private passenger auto, non-standard automobile, homeowners, farm owners, crop hail and multi-peril crop, and liability insurance policies. The company was founded in 1946 and is headquartered in Fargo, North Dakota. NI Holdings, Inc. operates as a subsidiary of Nodak Mutual Group, Inc.