ProSight Global (NYSE:PROS) and James River Group (NASDAQ:JRVR) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.
Profitability
This table compares ProSight Global and James River Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
ProSight Global | 4.78% | 10.17% | 1.91% |
James River Group | 6.37% | 9.43% | 1.47% |
Institutional and Insider Ownership
96.4% of ProSight Global shares are held by institutional investors. Comparatively, 97.6% of James River Group shares are held by institutional investors. 1.7% of ProSight Global shares are held by insiders. Comparatively, 3.5% of James River Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings for ProSight Global and James River Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
ProSight Global | 0 | 1 | 0 | 0 | 2.00 |
James River Group | 0 | 2 | 2 | 0 | 2.50 |
ProSight Global currently has a consensus price target of $13.00, indicating a potential upside of 2.69%. James River Group has a consensus price target of $159.00, indicating a potential upside of 239.67%. Given James River Group's stronger consensus rating and higher probable upside, analysts plainly believe James River Group is more favorable than ProSight Global.
Valuation and Earnings
This table compares ProSight Global and James River Group's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
ProSight Global | $878.06 million | 0.63 | $38.89 million | $1.39 | 9.11 |
James River Group | $907.13 million | 1.59 | $38.34 million | $1.40 | 33.44 |
ProSight Global has higher earnings, but lower revenue than James River Group. ProSight Global is trading at a lower price-to-earnings ratio than James River Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
ProSight Global has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, James River Group has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.
Summary
James River Group beats ProSight Global on 11 of the 14 factors compared between the two stocks.