Reviewing First Acceptance (OTCMKTS:FACO) and Sampo (OTCMKTS:SAXPY)

Sampo (OTCMKTS:SAXPY) and First Acceptance (OTCMKTS:FACO) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Institutional & Insider Ownership

0.0% of Sampo shares are owned by institutional investors. Comparatively, 0.1% of First Acceptance shares are owned by institutional investors. 9.5% of First Acceptance shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sampo and First Acceptance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sampo	0	2	0	1	2.67
First Acceptance	0	0	0	0	0.00

Risk & Volatility

Sampo has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, First Acceptance has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500.

Earnings and Valuation

This table compares Sampo and First Acceptance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sampo	$2.47 billion	50.88	$1.25 billion	$1.39	16.92
First Acceptance	$559.43 million	0.24	$26.29 million	$0.77	4.68

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

Profitability

This table compares Sampo and First Acceptance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sampo	N/A	19.63%	5.56%
First Acceptance	4.66%	14.50%	3.51%

Summary

Sampo beats First Acceptance on 10 of the 13 factors compared between the two stocks.

About Sampo

Sampo Oyj, together with its subsidiaries, engages in the provision of non-life insurance products and services in Finland, Sweden, Norway, Denmark, Estonia, Lithuania, Latvia, and the United Kingdom. The company operates through If, Topdanmark, Hastings, Mandatum, and Holding segments. It offers property, casualty, liability, accident, sickness, household, homeowner, motor, travel, marine, aviation, transport, forest, livestock, health, workers compensation, car, van, and bike insurance services, as well as reinsurance services. The company was founded in 1909 and is based in Helsinki, Finland.

About First Acceptance

First Acceptance Corporation, together with its subsidiaries, operates as a retailer, servicer, and underwriter of non-standard personal automobile insurance and related products in the United States. It issues non-standard automobile insurance policies to individuals based on their inability or unwillingness to obtain insurance coverage from standard carriers due to various factors, including their payment preference, failure to maintain continuous insurance coverage, or driving record. The company also underwrites auto and motorcycle insurance products; and renters, homeowners, commercial, pet, life, travel, outdoor vehicle, and hospital indemnity insurance products. In addition, it provides TeleMed, a subscription service that offers access to doctor for consulting, diagnosing, and prescribing medication for non-emergency illness. The company primarily distributes its products through its retail locations, as well as through call center and internet. As of December 31, 2021, it leased and operated 338 retail locations, and a call center. First Acceptance Corporation was founded in 1969 and is headquartered in Nashville, Tennessee.