Atlas Financial (OTCMKTS:AFHIF) versus CNA Financial (NYSE:CNA) Financial Analysis

CNA Financial (NYSE:CNAGet Rating) and Atlas Financial (OTCMKTS:AFHIFGet Rating) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Insider and Institutional Ownership

99.0% of CNA Financial shares are held by institutional investors. 0.2% of CNA Financial shares are held by company insiders. Comparatively, 14.4% of Atlas Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares CNA Financial and Atlas Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CNA Financial 10.09% 9.47% 1.76%
Atlas Financial -75.95% N/A -7.15%

Earnings and Valuation

This table compares CNA Financial and Atlas Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CNA Financial $11.91 billion 1.06 $1.20 billion $4.42 10.52
Atlas Financial $9.55 million 0.56 -$12.73 million N/A N/A

CNA Financial has higher revenue and earnings than Atlas Financial.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CNA Financial and Atlas Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNA Financial 0 1 0 0 2.00
Atlas Financial 0 0 0 0 N/A

Volatility and Risk

CNA Financial has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Atlas Financial has a beta of 2.73, indicating that its stock price is 173% more volatile than the S&P 500.

Summary

CNA Financial beats Atlas Financial on 7 of the 9 factors compared between the two stocks.

About CNA Financial (Get Rating)

CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The company offers professional liability coverages and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, employment practices, fiduciary, and fidelity coverages to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated standard property and casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products. It also provides property insurance products, such as property, marine, boiler, and machinery coverages; casualty insurance products comprising workers' compensation, general and product liability, commercial auto, and umbrella coverages; specialized loss-sensitive insurance programs and total risk management services; and run-off long term care policies. In addition, the company offers long-tail exposures comprising commercial automobile liability, workers' compensation, general and medical professional liability, other professional and management liability, and assumed reinsurance run-off and products liability; and short-tail exposures, such as property, commercial automobile physical damage, marine, and surety. It markets its products through independent agents, brokers, and general underwriters to small, medium, and large businesses; insurance companies; associations; professionals; and other groups in the marine, oil and gas, construction, manufacturing, life science, property, financial services, healthcare, and technology industries. The company was founded in 1853 and is headquartered in Chicago, Illinois. CNA Financial Corporation is a subsidiary of Loews Corporation.

About Atlas Financial (Get Rating)

Atlas Financial Holdings, Inc. engages in generating, underwriting and servicing commercial automobile insurance policies through its subsidiaries. The firm focuses on the light commercial automobile sector, which includes taxi cabs, nonemergency para-transit, limousine, livery, and business auto. Its products and services include taxi, car service, limousine, paratransit, airport transit, and business auto. The company was founded on December 31, 2010 and is headquartered in Schaumburg, IL.

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