Head-To-Head Analysis: Octave Specialty Group (NYSE:OSG) and CNA Financial (NYSE:CNA)

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

Volatility & Risk

CNA Financial has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Octave Specialty Group has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Profitability

This table compares CNA Financial and Octave Specialty Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CNA Financial	8.53%	12.23%	1.95%
Octave Specialty Group	-290.22%	-3.17%	-0.48%

Institutional and Insider Ownership

98.4% of CNA Financial shares are held by institutional investors. Comparatively, 80.9% of Octave Specialty Group shares are held by institutional investors. 0.3% of CNA Financial shares are held by company insiders. Comparatively, 9.3% of Octave Specialty Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for CNA Financial and Octave Specialty Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNA Financial	0	1	1	0	2.50
Octave Specialty Group	1	1	1	0	2.00

Octave Specialty Group has a consensus price target of $15.00, suggesting a potential upside of 156.85%. Given Octave Specialty Group’s higher possible upside, analysts clearly believe Octave Specialty Group is more favorable than CNA Financial.

Earnings & Valuation

This table compares CNA Financial and Octave Specialty Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CNA Financial	$14.71 billion	0.91	$1.28 billion	$4.69	10.49
Octave Specialty Group	$235.82 million	1.08	-$556.45 million	($15.34)	-0.38

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

Summary

CNA Financial beats Octave Specialty Group on 9 of the 13 factors compared between the two stocks.

About CNA Financial

CNA Financial Corporation provides commercial property and casualty insurance products in the United States and internationally. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The company offers professional liability coverages and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, employment practices, fiduciary, and fidelity and cyber coverages to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products. It also provides property, marine, boiler, and machinery coverage insurance products; casualty insurance products comprising workers' compensation, general and product liability, commercial auto, umbrella, and excess and surplus coverages; specialized loss-sensitive insurance programs and total risk management services; and run-off long term care policies. The company was founded in 1853 and is based in Chicago, Illinois. CNA Financial Corporation operates as a subsidiary of Loews Corporation.

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.