State Auto Financial (NASDAQ:STFC) and Sampo Oyj (OTCMKTS:SAXPF) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for State Auto Financial and Sampo Oyj, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
State Auto Financial 0 1 0 0 2.00
Sampo Oyj 0 1 0 0 2.00

State Auto Financial currently has a consensus target price of $30.00, indicating a potential downside of 9.37%. Given State Auto Financial’s higher possible upside, analysts plainly believe State Auto Financial is more favorable than Sampo Oyj.

Earnings and Valuation

This table compares State Auto Financial and Sampo Oyj’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
State Auto Financial $1.28 billion 1.12 $12.80 million $1.20 27.58
Sampo Oyj N/A N/A N/A N/A N/A

State Auto Financial has higher revenue and earnings than Sampo Oyj.

Dividends

State Auto Financial pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. Sampo Oyj does not pay a dividend. State Auto Financial pays out 33.3% of its earnings in the form of a dividend.

Profitability

This table compares State Auto Financial and Sampo Oyj’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
State Auto Financial 1.00% 6.09% 1.77%
Sampo Oyj N/A N/A N/A

Institutional & Insider Ownership

34.6% of State Auto Financial shares are held by institutional investors. 2.0% of State Auto Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

State Auto Financial beats Sampo Oyj on 8 of the 9 factors compared between the two stocks.

About State Auto Financial

State Auto Financial Corporation, through its subsidiaries, engages in writing personal, business, and specialty insurance products. It operates through four segments: Personal Insurance, Commercial Insurance, Specialty Insurance, and Investment Operations. The Personal Insurance segment primarily provides personal automobile, homeowners insurance, and other personal insurance products. The commercial insurance segment primarily provides commercial automobile, commercial multi-peril, fire and allied, general liability, and workers' compensation insurance covering small-to-medium sized commercial insurance market, as well as farm and ranch insurance. The Specialty Insurance segment provides commercial coverages that require specialized product underwriting, claims handling, or risk management services. This segment markets and underwrites specialized property exposures with a focus on catastrophe exposed risks covering property, and general liability; markets and underwrites commercial auto, healthcare, umbrella, property, and general liability coverages; and markets and distributes homogenous risks covering commercial auto, general liability, and property. The Investment Operations segment provides investment management services to affiliated insurance companies. The company markets its products primarily through independent agencies, including retail agencies and wholesale brokers. The company was founded in 1950 and is headquartered in Columbus, Ohio. State Auto Financial Corporation is a subsidiary of State Automobile Mutual Insurance Company.

About Sampo Oyj

Sampo Oyj, through its subsidiaries, provides life and non-life insurance products and services in Finland, Sweden, Norway, Denmark, and the Baltic countries. It operates through If, Topdanmark, Mandatum, and Holding Segments. The company offers life, property, and casualty insurance, as well as wealth management services. It also provides banking service. Sampo Oyj was founded in 1909 and is based in Helsinki, Finland.

Receive News & Ratings for State Auto Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for State Auto Financial and related companies with MarketBeat.com's FREE daily email newsletter.