Head-To-Head Analysis: Chubb (NYSE:CB) vs. Gainsco (OTCMKTS:GANS)

Chubb (NYSE:CB) and Gainsco (OTCMKTS:GANS) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Chubb and Gainsco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chubb	1	11	9	1	2.45
Gainsco	0	0	0	0	0.00

Chubb currently has a consensus price target of $349.10, suggesting a potential upside of 7.23%. Given Chubb’s stronger consensus rating and higher probable upside, equities analysts clearly believe Chubb is more favorable than Gainsco.

Earnings & Valuation

This table compares Chubb and Gainsco”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chubb	$59.40 billion	2.13	$10.31 billion	$28.32	11.50
Gainsco	N/A	N/A	N/A	N/A	N/A

Chubb has higher revenue and earnings than Gainsco.

Insider and Institutional Ownership

83.8% of Chubb shares are held by institutional investors. 0.4% of Chubb shares are held by insiders. Comparatively, 73.5% of Gainsco shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Chubb and Gainsco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chubb	18.58%	14.30%	4.13%
Gainsco	N/A	N/A	N/A

Summary

Chubb beats Gainsco on 9 of the 10 factors compared between the two stocks.

About Chubb

Chubb Limited provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, casualty, workers' compensation, package policies, risk management, financial lines, marine, construction, environmental, medical risk, cyber risk, surety, and casualty; and group accident and health insurance to large, middle market, and small commercial businesses. Its North America Personal P&C Insurance segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, and recreational marine insurance and services. The company's North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm, ranch, and specialty property and casualty, and commercial agriculture products. Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction; and group accident and health, and traditional and specialty personal lines for corporations, middle markets, and small customers through retail brokers, agents, and other channels. The company's Global Reinsurance segment offers traditional and specialty reinsurance under the Chubb Tempest Re brand to property and casualty companies. Its Life Insurance segment provides protection and savings products comprising whole life, endowment plans, individual and life, group term life, health protection, personal accident, credit life, universal life, group employee benefits, and unit linked contracts. It markets its products primarily through insurance and reinsurance brokers. The company was formerly known as ACE Limited and changed its name to Chubb Limited in January 2016. Chubb Limited was incorporated in 1985 and is headquartered in Zurich, Switzerland.

About Gainsco

GAINSCO, Inc. operates as a property and casualty insurance holding company. The company offers non-standard personal auto products, including coverage for third party liability, bodily injury, and physical damage, as well as collision and coverage for theft, physical damage, and other perils for an insured's vehicle. It is also involved in automotive sales and service, auto racing, and investment activities. The company offers its automobile insurance products under the GAINSCO Auto Insurance brand through independent partner agents and Website comparison shopping places. GAINSCO, Inc. was founded in 1978 and is based in Dallas, Texas.