Global Indemnity (NASDAQ:GBLI) and State Auto Financial (NASDAQ:STFC) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.
This table compares Global Indemnity and State Auto Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|State Auto Financial||1.00%||6.09%||1.77%|
Global Indemnity pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. State Auto Financial pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. State Auto Financial pays out 33.3% of its earnings in the form of a dividend.
Insider & Institutional Ownership
56.4% of Global Indemnity shares are held by institutional investors. Comparatively, 34.9% of State Auto Financial shares are held by institutional investors. 41.4% of Global Indemnity shares are held by insiders. Comparatively, 2.0% of State Auto Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Global Indemnity has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, State Auto Financial has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.
Valuation & Earnings
This table compares Global Indemnity and State Auto Financial’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Global Indemnity||$485.52 million||1.17||-$9.55 million||N/A||N/A|
|State Auto Financial||$1.28 billion||1.15||$12.80 million||$1.20||28.38|
State Auto Financial has higher revenue and earnings than Global Indemnity.
This is a summary of recent recommendations for Global Indemnity and State Auto Financial, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|State Auto Financial||0||1||0||0||2.00|
State Auto Financial has a consensus target price of $30.00, suggesting a potential downside of 11.92%. Given State Auto Financial’s higher probable upside, analysts clearly believe State Auto Financial is more favorable than Global Indemnity.
Global Indemnity beats State Auto Financial on 7 of the 13 factors compared between the two stocks.
Global Indemnity Company Profile
Global Indemnity Limited, through its subsidiaries, provides insurance and reinsurance products and services in the United States and internationally. The company operates through three segments: Commercial Lines, Personal Lines, and Reinsurance Operations. The Commercial Lines segment distributes property, general liability, casualty, and professional lines products, as well as products for vacant, and under construction and renovation dwellings. This segment primarily serves small commercial businesses through a network of wholesale general agents, program administrators, brokers, aggregators, and retail agents. The Personal Lines segment offers specialty personal lines and agricultural coverage, including agriculture, mobile homes, manufactured homes, homeowners, collectibles, and watersports primarily through retail agents, wholesale general agents, and brokers. The Reinsurance Operations segment provides third party treaty reinsurance solutions to specialty property and casualty insurance, and reinsurance companies; and professional liability products to companies through brokers, as well as on a direct basis. The company was incorporated in 2016 and is based in George Town, the Cayman Islands.
State Auto Financial Company Profile
State Auto Financial Corporation, through its subsidiaries, engages in writing personal, business, and specialty insurance products. It operates through four segments: Personal Insurance, Commercial Insurance, Specialty Insurance, and Investment Operations. The Personal Insurance segment primarily provides personal automobile, homeowners insurance, and other personal insurance products. The commercial insurance segment primarily provides commercial automobile, commercial multi-peril, fire and allied, general liability, and workers' compensation insurance covering small-to-medium sized commercial insurance market, as well as farm and ranch insurance. The Specialty Insurance segment provides commercial coverages that require specialized product underwriting, claims handling, or risk management services. This segment markets and underwrites specialized property exposures with a focus on catastrophe exposed risks covering property, and general liability; markets and underwrites commercial auto, healthcare, umbrella, property, and general liability coverages; and markets and distributes homogenous risks covering commercial auto, general liability, and property. The Investment Operations segment provides investment management services to affiliated insurance companies. The company markets its products primarily through independent agencies, including retail agencies and wholesale brokers. The company was founded in 1950 and is headquartered in Columbus, Ohio. State Auto Financial Corporation is a subsidiary of State Automobile Mutual Insurance Company.
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