Financial Analysis: Gainsco (OTCMKTS:GANS) & Chubb (NYSE:CB)

Gainsco (OTCMKTS:GANS) and Chubb (NYSE:CB) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Gainsco and Chubb, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gainsco	0	0	0	0	0.00
Chubb	1	11	9	1	2.45

Chubb has a consensus target price of $349.10, suggesting a potential upside of 2.32%. Given Chubb’s stronger consensus rating and higher possible upside, analysts plainly believe Chubb is more favorable than Gainsco.

Profitability

This table compares Gainsco and Chubb’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gainsco	N/A	N/A	N/A
Chubb	18.58%	14.30%	4.13%

Earnings & Valuation

This table compares Gainsco and Chubb”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gainsco	N/A	N/A	N/A	N/A	N/A
Chubb	$61.21 billion	2.16	$10.31 billion	$28.32	12.05

Chubb has higher revenue and earnings than Gainsco.

Insider and Institutional Ownership

83.8% of Chubb shares are owned by institutional investors. 73.5% of Gainsco shares are owned by company insiders. Comparatively, 0.4% of Chubb shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Chubb beats Gainsco on 9 of the 10 factors compared between the two stocks.

About Gainsco

GAINSCO, Inc. operates as a property and casualty insurance holding company. The company offers non-standard personal auto products, including coverage for third party liability, bodily injury, and physical damage, as well as collision and coverage for theft, physical damage, and other perils for an insured's vehicle. It is also involved in automotive sales and service, auto racing, and investment activities. The company offers its automobile insurance products under the GAINSCO Auto Insurance brand through independent partner agents and Website comparison shopping places. GAINSCO, Inc. was founded in 1978 and is based in Dallas, Texas.

About Chubb

Chubb Limited provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, casualty, workers' compensation, package policies, risk management, financial lines, marine, construction, environmental, medical risk, cyber risk, surety, and casualty; and group accident and health insurance to large, middle market, and small commercial businesses. Its North America Personal P&C Insurance segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, and recreational marine insurance and services. The company's North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm, ranch, and specialty property and casualty, and commercial agriculture products. Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction; and group accident and health, and traditional and specialty personal lines for corporations, middle markets, and small customers through retail brokers, agents, and other channels. The company's Global Reinsurance segment offers traditional and specialty reinsurance under the Chubb Tempest Re brand to property and casualty companies. Its Life Insurance segment provides protection and savings products comprising whole life, endowment plans, individual and life, group term life, health protection, personal accident, credit life, universal life, group employee benefits, and unit linked contracts. It markets its products primarily through insurance and reinsurance brokers. The company was formerly known as ACE Limited and changed its name to Chubb Limited in January 2016. Chubb Limited was incorporated in 1985 and is headquartered in Zurich, Switzerland.