Gjensidige Forsikring ASA (OTCMKTS:GJNSY) vs. Octave Specialty Group (NYSE:OSG) Critical Analysis

Gjensidige Forsikring ASA (OTCMKTS:GJNSY) and Octave Specialty Group (NYSE:OSG) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Valuation and Earnings

This table compares Gjensidige Forsikring ASA and Octave Specialty Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gjensidige Forsikring ASA	N/A	N/A	N/A	$8.72	3.46
Octave Specialty Group	$251.22 million	0.82	-$261.69 million	($3.65)	-1.25

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

Institutional & Insider Ownership

0.0% of Gjensidige Forsikring ASA shares are held by institutional investors. Comparatively, 80.9% of Octave Specialty Group shares are held by institutional investors. 7.2% of Octave Specialty Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Gjensidige Forsikring ASA and Octave Specialty Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gjensidige Forsikring ASA	0	0	0	0	0.00
Octave Specialty Group	1	2	1	0	2.00

Octave Specialty Group has a consensus target price of $15.00, suggesting a potential upside of 229.67%. Given Octave Specialty Group’s stronger consensus rating and higher probable upside, analysts plainly believe Octave Specialty Group is more favorable than Gjensidige Forsikring ASA.

Profitability

This table compares Gjensidige Forsikring ASA and Octave Specialty Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gjensidige Forsikring ASA	N/A	N/A	N/A
Octave Specialty Group	-51.10%	0.44%	0.17%

Summary

Octave Specialty Group beats Gjensidige Forsikring ASA on 8 of the 11 factors compared between the two stocks.

About Gjensidige Forsikring ASA

Gjensidige Forsikring ASA engages in the provision of general insurance and pension products in Norway, Sweden, Denmark, Latvia, Lithuania, and Estonia. The company operates through five segments: General Insurance Private, General Insurance Commercial, General Insurance Sweden, General Insurance Baltics, and Pension. It offers motor, property, accident and health, liability, marine/transport, natural perils, agriculture, travel, leisure craft, valuables, commercial, and life insurance products. The company also provides defined contribution occupational pension schemes for businesses, which include disability pension, spouse/cohabitant pension, and child's pension products. It distributes its products through various distribution channels comprising office channel, call center, Internet, partners, and brokers to private and commercial customers. The company was founded in 1816 and is headquartered in Oslo, Norway. Gjensidige Forsikring ASA operates as a subsidiary of GjensidigeStiftelsen.

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.