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

Earnings & Valuation

This table compares National Interstate and OneBeacon Insurance Group’s 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
OneBeacon Insurance Group N/A N/A N/A $0.72 25.13

National Interstate is trading at a lower price-to-earnings ratio than OneBeacon Insurance Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares National Interstate and OneBeacon Insurance Group’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%
OneBeacon Insurance Group 0.10% -0.12% 0.03%

Analyst Ratings

This is a breakdown of current ratings for National Interstate and OneBeacon Insurance Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Interstate 0 0 0 0 N/A
OneBeacon Insurance Group 0 0 0 0 N/A

Dividends

National Interstate pays an annual dividend of $0.56 per share and has a dividend yield of 1.7%. OneBeacon Insurance Group pays an annual dividend of $0.84 per share and has a dividend yield of 4.6%. National Interstate pays out 40.6% of its earnings in the form of a dividend. OneBeacon Insurance Group pays out 116.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

84.9% of National Interstate shares are owned by institutional investors. Comparatively, 17.3% of OneBeacon Insurance Group shares are owned by institutional investors. 11.8% of National Interstate shares are owned by insiders. Comparatively, 76.6% of OneBeacon Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

National Interstate beats OneBeacon Insurance Group on 6 of the 9 factors compared between the two stocks.

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.

OneBeacon Insurance Group Company Profile

OneBeacon Insurance Group, Ltd. (OneBeacon) is a specialty property and casualty insurance writer that offers a range of insurance products in the United States. The Company’s segments include Specialty Products, Specialty Industries, and Investing, Financing and Corporate. As of December 31, 2016, the Specialty Products segment consisted of 10 underwriting operating segments representing an aggregation based on those that offer products, coverages and services to customers across the United States. As of December 31, 2016, the Specialty Industries segment consisted of six underwriting operating segments representing an aggregation based on those that focus on solving the needs of a particular customer or industry group. The Investing, Financing and Corporate segment includes the investing and financing activities for OneBeacon on a consolidated basis, and certain other activities conducted through the Company and its intermediate subsidiaries.

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