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Amerisafe Inc versus Infinity Property and Casualty Corporation Head to Head Compare


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This is a head to head compare of Amerisafe Inc (NASDAQ:AMSF) and Infinity Property and Casualty Corporation (NASDAQ:IPCC) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.



Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.


Stock Returns
Symbol 3-Months 6-Months One-Year Fundamentals
AMSF +3.5% +17.4% +25.8%
IPCC +12.0% +20.1% +26.5%

These companies have the same star rating so the head-to-head compare will rely on a deep dive into specific metric comparisons. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition. The rating is computed by measuring numerous elements of the company's current financial data and their associated changes over time.

Now, let's dive into the two companies to compare them.

➤ Income Statement
First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons do not impact the rating.

Infinity Property and Casualty Corporation has substantially higher revenue in the last year than Amerisafe Inc. Raw revenue comps do not affect the head to head rating.
Revenue

Both AMSF and IPCC show positive earnings over the last year with the edge to AMSF.

Net Income


AMSF generates notably larger revenue per employee ($892,000) than IPCC ($645,000).

Revenue per Employee
($ Millions)


➤ Margins
Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.

Amerisafe Inc generates $1.36 in revenue for every $1 of expense, substantially higher than Infinity Property and Casualty Corporation's $1.02.

Revenue per Dollar of Expense


AMSF generates $0.14 in levered free cash flow for every $1 of revenue, massively higher than IPCC's $0.03.

Free Cash Flow
per Dollar of Revenue


➤ Growth
Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.

While Infinity Property and Casualty Corporation is growing revenue, Amerisafe Inc revenue is actually shrinking.

Revenue Growth


For every $1 in revenue, the stock market prices in $3.14 in market cap for AMSF and $0.66 in market cap for IPCC.

Price to Sales

Amerisafe Inc (NASDAQ:AMSF)
defeats
Infinity Property and Casualty Corporation (NASDAQ:IPCC) : 54 to 46