Progressive (NYSE:PGR – Get Free Report) and Octave Specialty Group (NYSE:OSG – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.
Risk & Volatility
Progressive has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, Octave Specialty Group has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Progressive and Octave Specialty Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Progressive | 2 | 14 | 6 | 0 | 2.18 |
| Octave Specialty Group | 1 | 1 | 1 | 1 | 2.50 |
Valuation & Earnings
This table compares Progressive and Octave Specialty Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Progressive | $87.67 billion | 1.35 | $11.31 billion | $19.67 | 10.29 |
| Octave Specialty Group | $251.22 million | 0.99 | -$261.69 million | ($4.86) | -1.14 |
Progressive has higher revenue and earnings than Octave Specialty Group. Octave Specialty Group is trading at a lower price-to-earnings ratio than Progressive, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
85.3% of Progressive shares are owned by institutional investors. Comparatively, 80.9% of Octave Specialty Group shares are owned by institutional investors. 0.3% of Progressive shares are owned by insiders. Comparatively, 7.2% of Octave Specialty Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Progressive and Octave Specialty Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Progressive | 12.92% | 33.47% | 9.05% |
| Octave Specialty Group | -75.91% | -0.55% | -0.13% |
Summary
Progressive beats Octave Specialty Group on 10 of the 15 factors compared between the two stocks.
About Progressive
The Progressive Corporation, an insurance holding company, provides personal and commercial auto, personal residential and commercial property, business related general liability, and other specialty property-casualty insurance products and related services in the United States. It operates in three segments: Personal Lines, Commercial Lines, and Property. The Personal Lines segment writes insurance for personal autos and recreational vehicles (RV). This segment's products include personal auto insurance; and special lines products, including insurance for motorcycles, ATVs, RVs, watercrafts, snowmobiles, and related products. The Commercial Lines segment provides auto-related liability and physical damage insurance, and business-related general liability and property insurance for autos, vans, and pick-up trucks used by small businesses, as well as non-fleet taxis, black-car services, and airport taxis; tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses, and long-haul operators; dump trucks used by light contractors and heavy constructions; log trucks and garbage trucks used by dirt, sand and gravel, logging, garbage/debris removal, and coal-type businesses; and tow trucks and wreckers used in towing services and gas/service station businesses. The Property segment writes residential property insurance for homeowners, other property owners, and renters, as well as offers manufactured homes, personal umbrella insurance, and primary and excess flood insurance. The company offers policy issuance and claims adjusting services; acts as an agent to homeowners, general liability, workers' compensation insurance, and other products; and reinsurance services. It sells its products through independent insurance agencies, as well as through mobile applications and over the phone. The Progressive Corporation was founded in 1937 and is headquartered in Mayfield Village, Ohio.
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.
Receive News & Ratings for Progressive Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Progressive and related companies with MarketBeat.com's FREE daily email newsletter.
