Octave Specialty Group (NYSE:OSG – Get Free Report) and Loews (NYSE:L – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Valuation & Earnings
This table compares Octave Specialty Group and Loews”s gross 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 | 0.89 | -$261.69 million | ($3.65) | -1.36 |
| Loews | $18.45 billion | 1.21 | $1.67 billion | $8.16 | 13.38 |
Profitability
This table compares Octave Specialty Group and Loews’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Octave Specialty Group | -51.10% | 0.44% | 0.17% |
| Loews | 9.02% | 8.60% | 1.96% |
Institutional and Insider Ownership
80.9% of Octave Specialty Group shares are held by institutional investors. Comparatively, 58.3% of Loews shares are held by institutional investors. 7.2% of Octave Specialty Group shares are held by company insiders. Comparatively, 19.0% of Loews shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Octave Specialty Group has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Loews has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for Octave Specialty Group and Loews, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Octave Specialty Group | 1 | 2 | 2 | 0 | 2.20 |
| Loews | 0 | 0 | 0 | 1 | 4.00 |
Octave Specialty Group currently has a consensus target price of $11.50, suggesting a potential upside of 131.39%. Given Octave Specialty Group’s higher possible upside, equities research analysts clearly believe Octave Specialty Group is more favorable than Loews.
Summary
Loews beats Octave Specialty Group on 11 of the 15 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 Loews
Loews Corporation provides commercial property and casualty insurance in the United States and internationally. The company offers specialty insurance products, such as management and professional liability, and other coverage products; surety and fidelity bonds; property insurance products that include standard and excess property, marine and boiler, and machinery coverages; and casualty insurance products, such as workers' compensation, general and product liability, and commercial auto, surplus, and umbrella coverages. It also provides loss-sensitive insurance programs; and warranty, risk management, information, and claims administration services. The company markets its insurance products and services through independent agents, brokers, and managing general underwriters. In addition, the company is involved in the transportation and storage of natural gas and natural gas liquids, and hydrocarbons through natural gas pipelines covering approximately 13,455 miles of interconnected pipelines; 855 miles of NGL pipelines in Louisiana and Texas; 14 underground storage fields with an aggregate gas capacity of approximately 199.5 billion cubic feet of natural gas; and eleven salt dome caverns and related brine infrastructure for providing brine supply services. Further, the company operates a chain of 25 hotels; and develops, manufactures, and markets a range of extrusion blow-molded and injection molded plastic containers for customers in the pharmaceutical, dairy, household chemicals, food/nutraceuticals, industrial/specialty chemicals, and water and beverage/juice industries, as well as manufactures commodity and differentiated plastic resins from recycled plastic materials. Loews Corporation was incorporated in 1969 and is headquartered in New York, New York.
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