Employers Holdings Inc (EIG) vs Octave Specialty Group, Inc. (OSG)

Employers Holdings Inc and Octave Specialty Group, Inc. are both Insurance Specialty companies. Employers Holdings Inc is the larger, with a market value of $854.4M against $186.5M — 4.6× the size. Octave Specialty Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Employers Holdings Inc trades at 67.6×. Octave Specialty Group, Inc. grew revenue faster over the last twelve months: 26.8% against −5.83%. Employers Holdings Inc has the higher net margin (0.91% vs −51.1%) and the higher return on invested capital (0.55% vs −1.66%). Across the 20 metrics below, Employers Holdings Inc leads on 10 and Octave Specialty Group, Inc. on 10.

Valuation

Metric EIG OSG Insurance Specialty median
P/E 67.57 n/m 9.15
P/S 1.03 0.59 1.84
P/B 1.00 0.23 1.16
Price to free cash flow 43.65 n/m 8.16
EV/EBITDA 47.71 17.48 7.51
EV/Sales 1.06 1.30 2.17
Earnings yield 1.48% (87.11%) 10.79%
Free cash flow yield 2.29% (32.67%) 11.79%

Profitability

Metric EIG OSG Insurance Specialty median
Gross margin 1.25% 75.14% 73.81%
Operating margin 1.25% (7.39%) 17.70%
Net margin 0.91% (51.11%) 13.80%
Free cash flow margin 2.35% (19.37%) 34.47%
Return on equity 0.78% (17.75%) 12.01%
Return on assets 0.22% (3.03%) 4.12%
Return on invested capital 0.55% (1.66%) 8.77%

Growth

Metric EIG OSG Insurance Specialty median
Revenue growth (TTM) (5.83%) 26.78% 7.53%
EPS growth (last fiscal year) (90.23%) 44.63% —
Revenue growth, 5-year CAGR 3.84% 10.00% 2.24%
Net income growth, 5-year CAGR (38.20%) 0.00% 0.00%

Health

Metric EIG OSG Insurance Specialty median
Debt to equity 0.15 0.19 0.15
Current ratio 0.37 0.83 0.53
Net debt to EBITDA (5.61) (14.51) 0.28

Dividend

Metric EIG OSG Insurance Specialty median
Dividend yield 2.69% — 2.60%
Payout ratio 0.23 0.00 0.21

Size

Metric EIG OSG Insurance Specialty median
Market cap 854.38m 186.51m 3.13b

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