Octave Specialty Group, Inc. (OSG) vs Tiptree Financial Inc. (TIPT)

Octave Specialty Group, Inc. and Tiptree Financial Inc. are both Insurance Specialty companies. Tiptree Financial Inc. is the larger, with a market value of $632.3M against $186.5M — 3.4× the size. Octave Specialty Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Tiptree Financial Inc. trades at 1.6×. Octave Specialty Group, Inc. grew revenue faster over the last twelve months: 26.8% against −67.9%. Tiptree Financial Inc. has the higher net margin (0.00% vs −51.1%) and the higher return on invested capital (0.00% vs −1.66%). Across the 19 metrics below, Tiptree Financial Inc. leads on 12 and Octave Specialty Group, Inc. on 7.

Valuation

Metric OSG TIPT Insurance Specialty median
P/E n/m 1.55 9.15
P/S 0.59 1,317.92 1.84
P/B 0.23 0.71 1.16
Price to free cash flow n/m 3.07 8.16
EV/EBITDA 17.48 9.81 7.51
EV/Sales 1.30 (799.01) 2.17
Earnings yield (87.11%) 64.31% 10.79%
Free cash flow yield (32.67%) 32.58% 11.79%

Profitability

Metric OSG TIPT Insurance Specialty median
Gross margin 75.14% 100.00% 73.81%
Operating margin (7.39%) 0.00% 17.70%
Net margin (51.11%) 0.00% 13.80%
Free cash flow margin (19.37%) 0.00% 34.47%
Return on equity (17.75%) 50.76% 12.01%
Return on assets (3.03%) 11.37% 4.12%
Return on invested capital (1.66%) 0.00% 8.77%

Growth

Metric OSG TIPT Insurance Specialty median
Revenue growth (TTM) 26.78% (67.89%) 7.53%
EPS growth (last fiscal year) 44.63% (41.54%) —
Revenue growth, 5-year CAGR 10.00% (77.30%) 2.24%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric OSG TIPT Insurance Specialty median
Debt to equity 0.19 0.00 0.15
Current ratio 0.83 0.00 0.53
Net debt to EBITDA (14.51) (0.43) 0.28

Dividend

Metric OSG TIPT Insurance Specialty median
Dividend yield — 1.22% 2.60%
Payout ratio 0.00 0.32 0.21

Size

Metric OSG TIPT Insurance Specialty median
Market cap 186.51m 632.33m 3.13b

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