Octave Specialty Group (NYSE:OSG) vs. Arch Capital Group (NASDAQ:ACGLN) Head to Head Comparison

Octave Specialty Group (NYSE:OSG) and Arch Capital Group (NASDAQ:ACGLN) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Institutional and Insider Ownership

80.9% of Octave Specialty Group shares are owned by institutional investors. 7.2% of Octave Specialty Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Octave Specialty Group and Arch Capital Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Octave Specialty Group	$251.22 million	0.83	-$261.69 million	($3.65)	-1.26
Arch Capital Group	$18.59 billion	N/A	N/A	N/A	N/A

Arch Capital Group has higher revenue and earnings than Octave Specialty Group.

Profitability

This table compares Octave Specialty Group and Arch Capital Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Octave Specialty Group	-51.10%	0.44%	0.17%
Arch Capital Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings for Octave Specialty Group and Arch Capital Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Octave Specialty Group	1	2	2	0	2.20
Arch Capital Group	0	0	0	0	0.00

Octave Specialty Group currently has a consensus price target of $11.50, indicating a potential upside of 149.46%. Given Octave Specialty Group’s stronger consensus rating and higher possible upside, analysts clearly believe Octave Specialty Group is more favorable than Arch Capital Group.

Summary

Octave Specialty Group beats Arch Capital Group on 7 of the 9 factors compared between the two stocks.

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.

About Arch Capital Group

Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; directors' and officers' liability, errors and omissions liability, employment practices and fiduciary liability, crime, professional indemnity, and other financial related coverages; medical professional and general liability insurance coverages; and workers' compensation and umbrella liability, as well as commercial automobile and inland marine products. It also provides property, energy, marine, and aviation insurance; travel insurance; accident, disability, and medical plan insurance coverages; captive insurance programs; employer's liability; contract and commercial surety coverages; and collateral protection, debt cancellation, and service contract reimbursement products. This segment markets its products through a group of licensed independent retail and wholesale brokers. Its Reinsurance segment provides casualty reinsurance for third party liability exposures; marine and aviation; motor reinsurance, whole account multi-line treaties, cyber, trade credit, surety, accident and health, workers' compensation catastrophe, agriculture, trade credit, and political risk products; reinsurance protection for catastrophic losses, and personal lines and commercial property exposures; life reinsurance; casualty clash; and risk management solutions. This segment markets its reinsurance products through brokers. The company's Mortgage segment offers direct mortgage insurance and mortgage reinsurance. The company was founded in 1995 and is based in Pembroke, Bermuda.