AMERISAFE, Inc. (AMSF) vs Octave Specialty Group, Inc. (OSG)

AMERISAFE, Inc. and Octave Specialty Group, Inc. are both Insurance Specialty companies. AMERISAFE, Inc. is the larger, with a market value of $376.8M against $231.6M — 1.6× the size. Octave Specialty Group, Inc. has negative trailing earnings, so its P/E is not meaningful; AMERISAFE, Inc. trades at 9.4×. Octave Specialty Group, Inc. grew revenue faster over the last twelve months: 26.8% against 7.68%. AMERISAFE, Inc. has the higher net margin (12.1% vs −51.1%) and the higher return on invested capital (15.9% vs −1.66%). Only AMERISAFE, Inc. pays a dividend (6.06%). Across the 19 metrics below, AMERISAFE, Inc. leads on 10 and Octave Specialty Group, Inc. on 9.

Valuation

Metric AMSF OSG Insurance Specialty median
P/E 9.39 n/m 9.49
P/S 1.13 0.73 1.69
P/B 1.58 0.29 1.23
Price to free cash flow 30.48 n/m 8.44
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 10.65% (67.51%) 10.48%
Free cash flow yield 3.28% (26.63%) 10.87%

Profitability

Metric AMSF OSG Insurance Specialty median
Gross margin 26.32% 75.14% 56.22%
Operating margin 15.03% (7.39%) 15.19%
Net margin 12.10% (51.11%) 13.80%
Free cash flow margin 3.70% (19.37%) 34.47%
Return on equity 15.76% (17.75%) 12.01%
Return on assets 3.55% (3.03%) 3.55%
Return on invested capital 15.85% (1.66%) 9.88%

Growth

Metric AMSF OSG Insurance Specialty median
Revenue growth (TTM) 7.68% 26.78% 7.68%
EPS growth (last fiscal year) (14.53%) 50.42% 8.65%
Revenue growth, 5-year CAGR (1.35%) 10.00% 2.24%
Net income growth, 5-year CAGR (11.45%) 0.00% 0.00%

Health

Metric AMSF OSG Insurance Specialty median
Debt to equity 0.00 0.19 0.16
Current ratio 0.41 0.83 0.52
Net debt to EBITDA (1.03) (14.51) 0.28

Dividend

Metric AMSF OSG Insurance Specialty median
Dividend yield 6.06% 0.00% 2.06%
Payout ratio 0.57 — 0.19

Size

Metric AMSF OSG Insurance Specialty median
Market cap 376.77m 231.57m 3.31b

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