Head to Head Analysis: Octave Specialty Group (NYSE:OSG) and Progressive (NYSE:PGR)

Octave Specialty Group (NYSE:OSG) and Progressive (NYSE:PGR) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares Octave Specialty Group and Progressive’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%
Progressive	12.92%	33.47%	9.05%

Valuation & Earnings

This table compares Octave Specialty Group and Progressive”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Octave Specialty Group	$251.22 million	0.98	-$261.69 million	($4.86)	-1.13
Progressive	$87.67 billion	1.36	$11.31 billion	$19.67	10.39

Progressive has higher revenue and earnings than Octave Specialty Group. Octave Specialty Group is trading at a lower price-to-earnings ratio than Progressive, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Octave Specialty Group and Progressive, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Octave Specialty Group	1	1	1	1	2.50
Progressive	2	14	6	0	2.18

Octave Specialty Group presently has a consensus target price of $15.00, indicating a potential upside of 173.47%. Progressive has a consensus target price of $238.11, indicating a potential upside of 16.56%. Given Octave Specialty Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Octave Specialty Group is more favorable than Progressive.

Risk & Volatility

Octave Specialty Group has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Progressive has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Institutional & Insider Ownership

80.9% of Octave Specialty Group shares are held by institutional investors. Comparatively, 85.3% of Progressive shares are held by institutional investors. 7.2% of Octave Specialty Group shares are held by company insiders. Comparatively, 0.3% of Progressive shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Progressive beats Octave Specialty Group on 10 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 Progressive

The Progressive Corporation, an insurance holding company, provides personal and commercial auto, personal residential and commercial property, business related general liability, and other specialty property-casualty insurance products and related services in the United States. It operates in three segments: Personal Lines, Commercial Lines, and Property. The Personal Lines segment writes insurance for personal autos and recreational vehicles (RV). This segment's products include personal auto insurance; and special lines products, including insurance for motorcycles, ATVs, RVs, watercrafts, snowmobiles, and related products. The Commercial Lines segment provides auto-related liability and physical damage insurance, and business-related general liability and property insurance for autos, vans, and pick-up trucks used by small businesses, as well as non-fleet taxis, black-car services, and airport taxis; tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses, and long-haul operators; dump trucks used by light contractors and heavy constructions; log trucks and garbage trucks used by dirt, sand and gravel, logging, garbage/debris removal, and coal-type businesses; and tow trucks and wreckers used in towing services and gas/service station businesses. The Property segment writes residential property insurance for homeowners, other property owners, and renters, as well as offers manufactured homes, personal umbrella insurance, and primary and excess flood insurance. The company offers policy issuance and claims adjusting services; acts as an agent to homeowners, general liability, workers' compensation insurance, and other products; and reinsurance services. It sells its products through independent insurance agencies, as well as through mobile applications and over the phone. The Progressive Corporation was founded in 1937 and is headquartered in Mayfield Village, Ohio.