National Interstate (NASDAQ: NATL) and MBIA (NYSE:MBI) are both financials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Valuation & Earnings

This table compares National Interstate and MBIA’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
National Interstate N/A N/A N/A $1.38 23.66
MBIA $237.00 million 3.63 -$1.52 billion ($12.11) -0.56

National Interstate has higher revenue, but lower earnings than MBIA. MBIA is trading at a lower price-to-earnings ratio than National Interstate, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

National Interstate has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, MBIA has a beta of 2.46, indicating that its stock price is 146% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for National Interstate and MBIA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Interstate 0 0 0 0 N/A
MBIA 0 0 2 0 3.00

MBIA has a consensus target price of $14.50, indicating a potential upside of 112.30%. Given MBIA’s higher possible upside, analysts plainly believe MBIA is more favorable than National Interstate.

Institutional and Insider Ownership

84.9% of National Interstate shares are owned by institutional investors. Comparatively, 92.0% of MBIA shares are owned by institutional investors. 11.8% of National Interstate shares are owned by company insiders. Comparatively, 4.1% of MBIA shares are owned 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.

Profitability

This table compares National Interstate and MBIA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Interstate 5.91% 10.13% 1.94%
MBIA N/A -4.33% -1.20%

Dividends

National Interstate pays an annual dividend of $0.56 per share and has a dividend yield of 1.7%. MBIA does not pay a dividend. National Interstate pays out 40.6% of its earnings in the form of a dividend.

National Interstate Company Profile

National Interstate Corporation and its subsidiaries operate as an insurance holding company that underwrites and sells traditional and alternative property and casualty insurance products to the passenger transportation, trucking and moving and storage industries, general commercial insurance to small businesses in Hawaii and Alaska and personal insurance to owners of recreational vehicles throughout the United States. The Company is a specialty property and casualty insurance company with a focus on the transportation industry. The Company operates through property and casualty insurance segment. The Company offers approximately 40 product lines in the specialty property and casualty insurance market, which it groups into approximately four general business components: alternative risk transfer (ART), transportation, specialty personal lines, and Hawaii and Alaska based on the class of business, insureds’ risk participation or geographic location.

MBIA Company Profile

MBIA Inc. is a holding company. The Company, through its subsidiaries, is engaged in the financial guarantee insurance businesses in the industry. The Company manages its business within three segments: United States (U.S.) public finance insurance; corporate, and international and structured finance insurance. The U.S. public finance insurance business is primarily operated through National Public Finance Guarantee Corporation. The corporate segment consists of general corporate activities, including providing general support services, including management, legal, accounting, treasury, information technology, and insurance portfolio surveillance, to other operating businesses, and asset and capital management. The international and structured finance insurance business is primarily operated through MBIA Insurance Corporation and its subsidiaries.

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