National Interstate (NATL) and Loews (L) Head-To-Head Survey

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

Earnings and Valuation

This table compares National Interstate and Loews’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Interstate N/A N/A N/A $1.38 23.56
Loews $13.11 billion 1.28 $654.00 million $2.81 17.74

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for National Interstate and Loews, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Interstate 0 0 0 0 N/A
Loews 1 0 0 0 1.00

Loews has a consensus target price of $35.00, indicating a potential downside of 29.78%. Given Loews’ higher possible upside, analysts plainly believe Loews is more favorable than National Interstate.

Institutional & Insider Ownership

84.9% of National Interstate shares are owned by institutional investors. Comparatively, 59.4% of Loews shares are owned by institutional investors. 11.8% of National Interstate shares are owned by insiders. Comparatively, 11.8% of Loews shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares National Interstate and Loews’ 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%
Loews 7.04% 4.08% 1.25%

Dividends

National Interstate pays an annual dividend of $0.56 per share and has a dividend yield of 1.7%. Loews pays an annual dividend of $0.25 per share and has a dividend yield of 0.5%. National Interstate pays out 40.6% of its earnings in the form of a dividend. Loews pays out 8.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Loews beats National Interstate on 5 of the 9 factors compared between the two stocks.

About National Interstate

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.

About Loews

Loews Corporation is a holding company. The Company, through its subsidiaries, is engaged in commercial property and casualty insurance; operation of offshore oil and gas drilling rigs; transportation and storage of natural gas and natural gas liquids, and operation of a chain of hotels. The Company has five segments consisted of its four individual operating subsidiaries, CNA Financial Corporation (CNA), Diamond Offshore Drilling, Inc. (Diamond Offshore), Boardwalk Pipeline Partners, LP (Boardwalk Pipeline) and Loews Hotels Holding Corporation (Loews Hotels), and the Corporate segment. CNA’s insurance products include commercial property and casualty coverages, including surety. CNA’s services include risk management, information services, warranty and claims administration. CNA’s core business, commercial property and casualty insurance operations include Specialty, Commercial and International lines of business.

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