State Auto Financial Corporation (NASDAQ: STFC) is one of 92 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it contrast to its rivals? We will compare State Auto Financial Corporation to similar businesses based on the strength of its dividends, analyst recommendations, valuation, profitability, risk, earnings and institutional ownership.

Insider & Institutional Ownership

32.9% of State Auto Financial Corporation shares are held by institutional investors. Comparatively, 60.8% of shares of all “Property & Casualty Insurance” companies are held by institutional investors. 1.5% of State Auto Financial Corporation shares are held by insiders. Comparatively, 15.5% of shares of all “Property & Casualty Insurance” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

State Auto Financial Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. State Auto Financial Corporation pays out 35.7% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.4% and pay out 26.6% of their earnings in the form of a dividend.

Risk and Volatility

State Auto Financial Corporation has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, State Auto Financial Corporation’s rivals have a beta of 0.93, indicating that their average share price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for State Auto Financial Corporation and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
State Auto Financial Corporation 0 3 0 0 2.00
State Auto Financial Corporation Competitors 597 2231 2115 41 2.32

State Auto Financial Corporation currently has a consensus price target of $26.00, indicating a potential downside of 1.22%. As a group, “Property & Casualty Insurance” companies have a potential upside of 0.38%. Given State Auto Financial Corporation’s rivals stronger consensus rating and higher probable upside, analysts plainly believe State Auto Financial Corporation has less favorable growth aspects than its rivals.

Profitability

This table compares State Auto Financial Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
State Auto Financial Corporation 3.33% 1.46% 0.44%
State Auto Financial Corporation Competitors 9.89% 5.22% 2.69%

Valuation and Earnings

This table compares State Auto Financial Corporation and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
State Auto Financial Corporation $1.42 billion $66.20 million 23.50
State Auto Financial Corporation Competitors $11.75 billion $2.00 billion 36.34

State Auto Financial Corporation’s rivals have higher revenue and earnings than State Auto Financial Corporation. State Auto Financial Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

State Auto Financial Corporation rivals beat State Auto Financial Corporation on 14 of the 15 factors compared.

About State Auto Financial Corporation

State Auto Financial Corporation is a property and casualty insurance holding company. The Company is engaged in writing personal, business and specialty insurance. Its segments include Personal Insurance Segment, Commercial Insurance Segment and Specialty Insurance Segment. Its Personal Insurance Segment include personal auto, homeowners and other personal; Commercial Insurance Segment include commercial auto, small commercial package, middle market commercial, workers’ compensation and other commercial, and Specialty Insurance Segment include Excess & Surplus (E&S) property, E&S casualty and programs. State Auto Financial’s subsidiaries include State Auto Property & Casualty Insurance Company (State Auto P&C), Milbank Insurance Company (Milbank) and State Auto Insurance Company of Ohio (SA Ohio), each of which is a property and casualty insurance company, and Stateco Financial Services, Inc., (Stateco), which provides investment management services to affiliated insurance companies.

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