Contrasting Intact Financial (OTCMKTS:IFCZF) and Direct Line Insurance Group (OTCMKTS:DIISY)

Intact Financial (OTCMKTS:IFCZF) and Direct Line Insurance Group (OTCMKTS:DIISY) are both financial services companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Institutional and Insider Ownership

0.3% of Direct Line Insurance Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Intact Financial and Direct Line Insurance Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intact Financial	11.79%	19.53%	5.70%
Direct Line Insurance Group	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Intact Financial and Direct Line Insurance Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intact Financial	0	0	6	0	3.00
Direct Line Insurance Group	0	0	0	0	0.00

Dividends

Intact Financial pays an annual dividend of $4.31 per share and has a dividend yield of 2.3%. Direct Line Insurance Group pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. Intact Financial pays out 32.8% of its earnings in the form of a dividend. Direct Line Insurance Group pays out 54.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation & Earnings

This table compares Intact Financial and Direct Line Insurance Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intact Financial	$20.46 billion	1.66	$2.41 billion	$13.16	14.54
Direct Line Insurance Group	N/A	N/A	N/A	$0.90	20.09

Intact Financial has higher revenue and earnings than Direct Line Insurance Group. Intact Financial is trading at a lower price-to-earnings ratio than Direct Line Insurance Group, indicating that it is currently the more affordable of the two stocks.

Summary

Intact Financial beats Direct Line Insurance Group on 8 of the 11 factors compared between the two stocks.

About Intact Financial

Intact Financial Corporation, through its subsidiaries, provides property and casualty insurance products to individuals and businesses in Canada, the United States, the United Kingdom, and internationally. The company offers insurance, such as personal auto which provides coverage from accidents, third party liability, and physical damage; personal property which provides protection for homes and contents from risks, including fire, theft, vandalism, water damages, other damages, and personal liability; and commercial line and specialty line insurance which provides commercial auto, property, and liability coverages. It also provides pet and business insurance, as well as provides risk management solutions. The company serves its products to accident and health, technology, ocean and inland marine, builder's risk, and entertainment, as well as financial services and institutions; and various products to specialty property, surety, tuition reimbursement, management liability, and cyber and environmental institutions. It offers specialty insurance products including travel insurance, brokers, direct to consumer, agencies, wholesalers, affinity group, Intact Prestige, and managing general agent platform. The company was formerly known as ING Canada Inc. and changed its name to Intact Financial Corporation in 2009. Intact Financial Corporation was founded in 1809 and is based in Toronto, Canada.

About Direct Line Insurance Group

Direct Line Insurance Group plc engages in the provision of general insurance products and services in the United Kingdom. The company operates through Motor, Home, Rescue and Other Personal Lines, and Commercial segments. It offers motor, home, van, landlord, rescue, pet, tradesperson, business, creditor and select, and travel insurance products, as well as commercial insurance for small and medium-sized enterprises. The company also provides management, motor accident vehicle repair, insurance intermediary, support and operational, legal, software development, and breakdown recovery services. It sells its insurance products directly, through price comparison websites and phone, and through partners and brokers under the Direct Line, Churchill, Privilege, Darwin, Green Flag, Direct Line for Business, DLG Partnerships, DLG Auto Services, and DLG Legal Services brands. The company was formerly known as RBS Insurance Group Limited and changed its name to Direct Line Insurance Group plc in February 2012. Direct Line Insurance Group plc was founded in 1985 and is based in Bromley, the United Kingdom.