Financial Analysis: First Acceptance (OTCMKTS:FACO) & Mapfre (OTCMKTS:MPFRF)

Mapfre (OTCMKTS:MPFRF) and First Acceptance (OTCMKTS:FACO) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Profitability

This table compares Mapfre and First Acceptance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mapfre	N/A	N/A	N/A
First Acceptance	7.82%	19.01%	4.50%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Mapfre and First Acceptance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mapfre	1	1	0	0	1.50
First Acceptance	0	0	0	0	0.00

Insider and Institutional Ownership

13.6% of Mapfre shares are owned by institutional investors. Comparatively, 0.1% of First Acceptance shares are owned by institutional investors. 9.5% of First Acceptance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Mapfre and First Acceptance”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mapfre	N/A	N/A	N/A	$0.26	21.06
First Acceptance	$506.34 million	0.45	$30.23 million	$0.99	6.19

First Acceptance has higher revenue and earnings than Mapfre. First Acceptance is trading at a lower price-to-earnings ratio than Mapfre, indicating that it is currently the more affordable of the two stocks.

Summary

First Acceptance beats Mapfre on 6 of the 9 factors compared between the two stocks.

About Mapfre

Mapfre, S.A. engages in insurance, finance, securities, investment, and services business worldwide. The company offers life and non-life; health; accident; property and casualty protection comprising automobile and homeowner insurance, personal third-party liability and asset insurance, etc.; savings and investment; retirement; burial; travel; and leisure insurance solutions. It also provides insurance solutions for agriculture and livestock, as well as reinsurance services. In addition, the company provides pension and funeral services, as well as operates theme parks. The company offers its services to professionals, entrepreneurs, self-employed, and companies, as well as small, medium, and large corporations. It offers solutions for aviation, energy, industry, construction etc. The company was formerly known as Corporacion Mapfre and changed its name to Mapfre, S.A. in December 2006. Mapfre, S.A. was founded in 1933 and is headquartered in Majadahonda, Spain. Mapfre, S.A. operates as a subsidiary of Cartera Mapfre, S.L.

About First Acceptance

First Acceptance Corporation, together with its subsidiaries, operates as a retailer, servicer, and underwriter of non-standard personal automobile insurance and related products in the United States. It issues non-standard automobile insurance policies to individuals based on their inability or unwillingness to obtain insurance coverage from standard carriers due to various factors, including their payment preference, failure to maintain continuous insurance coverage, or driving record. The company also underwrites auto and motorcycle insurance products; and renters, homeowners, commercial, pet, life, travel, outdoor vehicle, and hospital indemnity insurance products. In addition, it provides TeleMed, a subscription service that offers access to doctor for consulting, diagnosing, and prescribing medication for non-emergency illness. The company primarily distributes its products through its retail locations, as well as through call center and internet. As of December 31, 2021, it leased and operated 338 retail locations, and a call center. First Acceptance Corporation was founded in 1969 and is headquartered in Nashville, Tennessee.