Critical Survey: Hamilton Insurance Group (NYSE:HG) versus GAINSCO (OTCMKTS:GANS)

Hamilton Insurance Group (NYSE:HG) and GAINSCO (OTCMKTS:GANS) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Profitability

This table compares Hamilton Insurance Group and GAINSCO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hamilton Insurance Group	21.88%	21.92%	6.70%
GAINSCO	N/A	N/A	N/A

Institutional and Insider Ownership

29.2% of Hamilton Insurance Group shares are held by institutional investors. 2.7% of Hamilton Insurance Group shares are held by insiders. Comparatively, 73.5% of GAINSCO shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Hamilton Insurance Group and GAINSCO”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hamilton Insurance Group	$1.57 billion	1.20	$258.73 million	$4.47	4.18
GAINSCO	N/A	N/A	N/A	N/A	N/A

Hamilton Insurance Group has higher revenue and earnings than GAINSCO.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Hamilton Insurance Group and GAINSCO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hamilton Insurance Group	0	1	4	0	2.80
GAINSCO	0	0	0	0	0.00

Hamilton Insurance Group presently has a consensus target price of $22.20, suggesting a potential upside of 18.93%. Given Hamilton Insurance Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Hamilton Insurance Group is more favorable than GAINSCO.

Summary

Hamilton Insurance Group beats GAINSCO on 8 of the 9 factors compared between the two stocks.

About Hamilton Insurance Group

Hamilton Insurance Group, Ltd., through its subsidiaries, provides underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company operates Hamilton Global Specialty, Hamilton Select, and Hamilton Re underwriting platforms. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property reinsurance and insurance; and specialty reinsurance solutions, including accident and health, aviation and space, crisis management, mortgage, financial lines, marine and energy, and multiline specialty. In addition, it offers accident and health, cyber, energy, environmental, financial lines, fine art and specie, kidnap and ransom, mergers and acquisitions, marine and energy liability, political risk and violence, professional liability, property binders, property direct and facultative, professional lines, space, upstream energy, excess casualty, war and terrorism, allied medical, management liability, medical professionals, general liability, products liability and contractors, and small business casualty insurance plans, as well as surety and treaty reinsurance products. The company was incorporated in 2013 and is headquartered in Pembroke, Bermuda.

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.