Octave Specialty Group (NYSE:OSG – Get Free Report) and United Fire Group (NASDAQ:UFCS – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Insider and Institutional Ownership
80.9% of Octave Specialty Group shares are owned by institutional investors. Comparatively, 62.7% of United Fire Group shares are owned by institutional investors. 7.2% of Octave Specialty Group shares are owned by insiders. Comparatively, 6.1% of United Fire Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Octave Specialty Group and United Fire Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Octave Specialty Group | -75.91% | -0.55% | -0.13% |
| United Fire Group | 9.16% | 14.65% | 3.51% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Octave Specialty Group | 1 | 1 | 1 | 1 | 2.50 |
| United Fire Group | 0 | 0 | 3 | 1 | 3.25 |
Octave Specialty Group presently has a consensus target price of $15.00, indicating a potential upside of 179.59%. United Fire Group has a consensus target price of $51.00, indicating a potential upside of 13.23%. Given Octave Specialty Group’s higher probable upside, analysts clearly believe Octave Specialty Group is more favorable than United Fire Group.
Earnings & Valuation
This table compares Octave Specialty Group and United Fire Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Octave Specialty Group | $251.22 million | 0.96 | -$261.69 million | ($4.86) | -1.10 |
| United Fire Group | $1.39 billion | 0.83 | $118.19 million | $4.96 | 9.08 |
United Fire Group has higher revenue and earnings than Octave Specialty Group. Octave Specialty Group is trading at a lower price-to-earnings ratio than United Fire Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Octave Specialty Group has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, United Fire Group has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.
Summary
United Fire Group beats Octave Specialty Group on 9 of the 14 factors compared between the two stocks.
About Octave Specialty Group
Ambac Financial Group, Inc. operates as a financial services holding company. It operates three businesses: Specialty Property and Casualty Insurance, Insurance Distribution, and Legacy Financial Guarantee (LFG) Insurance. The Specialty Property and Casualty Insurance business provides specialty property and casualty program insurance with a focus commercial and personal liability risks. The Insurance Distribution business includes the specialty property and casualty insurance distribution business, which includes managing general agents and underwriters, insurance wholesalers, brokers, and other distribution businesses. The LFG Insurance business offers financial guarantee insurance policies that provide an unconditional and irrevocable guarantee, which protects the holder of a debt obligation against non-payment when due of the principal and interest on the obligations guaranteed. Ambac Financial Group, Inc. was incorporated in 1991 and is headquartered in New York, New York.
About United Fire Group
United Fire Group, Inc., together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States. The company offers commercial and personal lines of property and casualty insurance; and reinsurance coverage for property and casualty insurance. Its commercial lines include fire and allied lines, other liability, automobile, workers’ compensation, fidelity and surety coverage, and other insurance products; and personal lines comprise automobile, and fire and allied lines coverage, including homeowners, as well as provides assumed reinsurance products. The company sells its products through a network of independent agencies. United Fire Group, Inc. was incorporated in 1946 and is headquartered in Cedar Rapids, Iowa.
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