Assured Guaranty Ltd. (AGO) vs Octave Specialty Group, Inc. (OSG)

Assured Guaranty Ltd. and Octave Specialty Group, Inc. are both Insurance Specialty companies. Assured Guaranty Ltd. is the larger, with a market value of $3.1B against $207.2M — 14.8× the size. Octave Specialty Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Assured Guaranty Ltd. trades at 9.5×. Octave Specialty Group, Inc. grew revenue faster over the last twelve months: 26.8% against −10.6%. Assured Guaranty Ltd. has the higher net margin (37.3% vs −51.1%) and the higher return on invested capital (3.91% vs −1.66%). Only Assured Guaranty Ltd. pays a dividend (2.09%). Across the 19 metrics below, Assured Guaranty Ltd. leads on 12 and Octave Specialty Group, Inc. on 7.

Valuation

Metric AGO OSG Insurance Specialty median
P/E 9.46 n/m 8.97
P/S 3.34 0.66 1.87
P/B 0.56 0.26 1.15
Price to free cash flow 9.70 n/m 8.00
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 10.57% (78.33%) 10.57%
Free cash flow yield 10.31% (29.37%) 12.08%

Profitability

Metric AGO OSG Insurance Specialty median
Gross margin 99.04% 75.14% 73.81%
Operating margin 46.38% (7.39%) 17.70%
Net margin 37.34% (51.11%) 13.80%
Free cash flow margin 34.47% (19.37%) 34.47%
Return on equity 6.21% (17.75%) 12.01%
Return on assets 2.84% (3.03%) 4.12%
Return on invested capital 3.91% (1.66%) 8.77%

Growth

Metric AGO OSG Insurance Specialty median
Revenue growth (TTM) (10.56%) 26.78% 7.53%
EPS growth (last fiscal year) 49.34% 44.63% 5.61%
Revenue growth, 5-year CAGR (0.09%) 10.00% 2.24%
Net income growth, 5-year CAGR 6.80% 0.00% 0.00%

Health

Metric AGO OSG Insurance Specialty median
Debt to equity 0.31 0.19 0.15
Current ratio 0.42 0.83 0.53
Net debt to EBITDA 2.24 (14.51) 0.28

Dividend

Metric AGO OSG Insurance Specialty median
Dividend yield 2.09% 0.00% 2.09%
Payout ratio 0.20 — 0.20

Size

Metric AGO OSG Insurance Specialty median
Market cap 3.07b 207.23m 3.07b

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