Analyzing The Hanover Insurance Group (NYSE:THG) and GAINSCO (OTCMKTS:GANS)

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

Analyst Ratings

This is a breakdown of current ratings and target prices for GAINSCO and The Hanover Insurance Group, as reported by MarketBeat.com.

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

The Hanover Insurance Group has a consensus price target of $174.88, indicating a potential upside of 11.88%. Given The Hanover Insurance Group’s stronger consensus rating and higher possible upside, analysts plainly believe The Hanover Insurance Group is more favorable than GAINSCO.

Profitability

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

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

Institutional & Insider Ownership

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GAINSCO	N/A	N/A	N/A	N/A	N/A
The Hanover Insurance Group	$5.99 billion	0.94	$35.30 million	$10.08	15.51

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

Summary

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

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.

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.