GAINSCO (OTCMKTS:GANS) versus The Hanover Insurance Group (NYSE:THG) Head-To-Head Review

The Hanover Insurance Group (NYSE:THG) and GAINSCO (OTCMKTS:GANS) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Valuation & Earnings

This table compares The Hanover Insurance Group and GAINSCO”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Hanover Insurance Group	$5.99 billion	0.95	$35.30 million	$10.08	15.76
GAINSCO	N/A	N/A	N/A	N/A	N/A

The Hanover Insurance Group has higher revenue and earnings than GAINSCO.

Institutional & Insider Ownership

86.6% of The Hanover Insurance Group shares are owned by institutional investors. 2.5% of The Hanover Insurance Group shares are owned by insiders. Comparatively, 73.5% of GAINSCO shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares The Hanover Insurance Group and GAINSCO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Hanover Insurance Group	5.92%	15.53%	2.72%
GAINSCO	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings for The Hanover Insurance Group and GAINSCO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hanover Insurance Group	0	4	4	0	2.50
GAINSCO	0	0	0	0	0.00

The Hanover Insurance Group currently has a consensus price target of $174.88, indicating a potential upside of 10.11%. Given The Hanover Insurance Group’s stronger consensus rating and higher possible upside, research analysts plainly believe The Hanover Insurance Group is more favorable than GAINSCO.

Summary

The Hanover Insurance Group beats GAINSCO on 8 of the 9 factors compared between the two stocks.

About The Hanover Insurance Group

The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States. The company operates through four segments: Core Commercial, Specialty, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, workers' compensation, and other commercial lines coverage. The Specialty segment provides professional and executive Lines, marine, and surety and other, as well as specialty property and casualty, such as program business, specialty industrial business, excess and surplus business, and specialty general liability coverage. The Personal Lines segment offers personal automobile and homeowner's coverages, as well as other personal coverages, such as personal umbrella, inland marine, fire, personal watercraft, personal cyber, and other miscellaneous coverages. The Other segment markets investment advisory services to institutions, insurance companies, pension funds, and other organizations. The Hanover Insurance Group, Inc. markets its products and services through independent agents and brokers. The company was formerly known as Allmerica Financial Corp. and changed its name to The Hanover Insurance Group, Inc. in December 2005. The Hanover Insurance Group, Inc. was founded in 1852 and is headquartered in Worcester, Massachusetts.

About GAINSCO

GAINSCO, Inc. operates as a property and casualty insurance holding company. The company offers non-standard personal auto products, including coverage for third party liability, bodily injury, and physical damage, as well as collision and coverage for theft, physical damage, and other perils for an insured's vehicle. It is also involved in automotive sales and service, auto racing, and investment activities. The company offers its automobile insurance products under the GAINSCO Auto Insurance brand through independent partner agents and Website comparison shopping places. GAINSCO, Inc. was founded in 1978 and is based in Dallas, Texas.