State National Companies (NASDAQ: SNC) and OneBeacon Insurance Group (NYSE:OB) are both small-cap financials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.
Insider and Institutional Ownership
58.6% of State National Companies shares are held by institutional investors. Comparatively, 17.3% of OneBeacon Insurance Group shares are held by institutional investors. 34.8% of State National Companies shares are held by company insiders. Comparatively, 76.6% of OneBeacon Insurance Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares State National Companies and OneBeacon Insurance Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|State National Companies||23.91%||18.02%||1.72%|
|OneBeacon Insurance Group||0.10%||-0.12%||0.03%|
This is a breakdown of recent ratings for State National Companies and OneBeacon Insurance Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|State National Companies||1||2||4||0||2.43|
|OneBeacon Insurance Group||0||0||0||0||N/A|
State National Companies presently has a consensus price target of $59.50, suggesting a potential upside of 183.06%. Given State National Companies’ higher probable upside, equities analysts plainly believe State National Companies is more favorable than OneBeacon Insurance Group.
Valuation and Earnings
This table compares State National Companies and OneBeacon Insurance Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|State National Companies||$217.07 million||4.08||$49.07 million||$1.25||16.82|
|OneBeacon Insurance Group||N/A||N/A||N/A||$0.72||25.13|
State National Companies has higher revenue and earnings than OneBeacon Insurance Group. State National Companies is trading at a lower price-to-earnings ratio than OneBeacon Insurance Group, indicating that it is currently the more affordable of the two stocks.
State National Companies pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. OneBeacon Insurance Group pays an annual dividend of $0.84 per share and has a dividend yield of 4.6%. State National Companies pays out 19.2% of its earnings in the form of a dividend. OneBeacon Insurance Group pays out 116.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
State National Companies beats OneBeacon Insurance Group on 9 of the 12 factors compared between the two stocks.
State National Companies Company Profile
State National Companies, Inc. is a specialty provider of property and casualty insurance. The Company’s segments include Program Services, Lender Services and Corporate. In the Program Services segment, the Company operates an issuing carrier (fronting) business to provide insurance capacity access to the United States property and casualty insurance markets. In the Lender Services segment, the Company specializes in providing collateral protection insurance, which insures automobiles held as collateral for loans made by financial institutions. The Company writes its insurance business through its insurance company subsidiaries, which include State National Insurance Company, Inc. (SNIC), National Specialty Insurance Company (NSIC) and United Specialty Insurance Company (USIC). As of December 31, 2016, SNIC and NSIC were admitted carriers licensed to write property and casualty business in all 50 states and the District of Columbia. USIC is an admitted carrier in Delaware.
OneBeacon Insurance Group Company Profile
OneBeacon Insurance Group, Ltd. (OneBeacon) is a specialty property and casualty insurance writer that offers a range of insurance products in the United States. The Company’s segments include Specialty Products, Specialty Industries, and Investing, Financing and Corporate. As of December 31, 2016, the Specialty Products segment consisted of 10 underwriting operating segments representing an aggregation based on those that offer products, coverages and services to customers across the United States. As of December 31, 2016, the Specialty Industries segment consisted of six underwriting operating segments representing an aggregation based on those that focus on solving the needs of a particular customer or industry group. The Investing, Financing and Corporate segment includes the investing and financing activities for OneBeacon on a consolidated basis, and certain other activities conducted through the Company and its intermediate subsidiaries.
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