Analyzing Independence (NYSE:IHC) and Kansas City Life Insurance (NYSE:KCLI)

Independence (NYSE:IHC) and Kansas City Life Insurance (OTCMKTS:KCLI) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Valuation & Earnings

This table compares Independence and Kansas City Life Insurance’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Independence $350.77 million 1.60 $28.48 million N/A N/A
Kansas City Life Insurance $461.03 million 0.71 $15.67 million N/A N/A

Independence has higher earnings, but lower revenue than Kansas City Life Insurance.

Dividends

Independence pays an annual dividend of $0.30 per share and has a dividend yield of 0.8%. Kansas City Life Insurance pays an annual dividend of $1.08 per share and has a dividend yield of 3.2%. Independence has raised its dividend for 7 consecutive years.

Institutional and Insider Ownership

18.6% of Independence shares are owned by institutional investors. 7.0% of Independence shares are owned by company insiders. Comparatively, 63.1% of Kansas City Life Insurance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Independence and Kansas City Life Insurance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Independence 8.48% 6.74% 2.90%
Kansas City Life Insurance 3.79% 2.60% 0.38%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Independence and Kansas City Life Insurance, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Independence 0 0 0 0 N/A
Kansas City Life Insurance 0 0 0 0 N/A

Risk and Volatility

Independence has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500. Comparatively, Kansas City Life Insurance has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.

Summary

Independence beats Kansas City Life Insurance on 8 of the 12 factors compared between the two stocks.

Independence Company Profile

Independence Holding Company, through its subsidiaries, engages in life and health insurance business. The company's dental portfolio includes indemnity and PPO plans for employer groups of two or more lives, and for individuals within affinity groups; vision plans that offer a flat reimbursement amount for exams and materials; and short-term medical products for people with temporary needs for health coverage. It also provides supplemental products, including hospital indemnity, fixed indemnity limited benefit, critical illness, accident medical coverage, and life insurance products to individuals and families; and pet insurance and occupational accident insurance products. In addition, the company offers group long-term and short-term disability products to employers that provide benefit to their employees; New York short-term disability plan that offers temporary cash payments to replace wages lost; and group term life products, such as group term life, accidental death and dismemberment (AD&D), supplemental life and AD&D, and dependent life products. Independence Holding Company markets its products through general agents, independent brokers, and independent producers in 50 states of the United States, the District of Columbia, the Virgin Islands, and Puerto Rico. The company was founded in 1980 and is headquartered in Stamford, Connecticut.

Kansas City Life Insurance Company Profile

Kansas City Life Insurance Company, together with its subsidiaries, operates as a life insurance company in the United States. It operates through three segments: Individual Insurance, Group Insurance, and Old American. The company offers term, return of premium, universal, indexed universal, variable universal, and whole life insurance products, as well as annuities. It also provides dental, vision, group disability, accident, and health insurance products, as well as distributes variable products. The company was founded in 1895 and is based in Kansas City, Missouri.

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