Progressive (NYSE:PGR) & Majestic Capital (OTCMKTS:MAJCQ) Financial Analysis

Progressive (NYSE:PGR) and Majestic Capital (OTCMKTS:MAJCQ) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and target prices for Progressive and Majestic Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Progressive	0	5	12	1	2.78
Majestic Capital	0	0	0	0	0.00

Progressive presently has a consensus target price of $269.81, suggesting a potential upside of 1.41%. Given Progressive’s stronger consensus rating and higher probable upside, analysts clearly believe Progressive is more favorable than Majestic Capital.

Institutional and Insider Ownership

85.3% of Progressive shares are owned by institutional investors. 0.3% of Progressive shares are owned by insiders. Comparatively, 14.3% of Majestic Capital 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.

Valuation and Earnings

This table compares Progressive and Majestic Capital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Progressive	$62.11 billion	2.51	$3.90 billion	$13.76	19.34
Majestic Capital	N/A	N/A	N/A	N/A	N/A

Progressive has higher revenue and earnings than Majestic Capital.

Profitability

This table compares Progressive and Majestic Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Progressive	11.27%	33.10%	7.90%
Majestic Capital	N/A	N/A	N/A

Summary

Progressive beats Majestic Capital on 9 of the 10 factors compared between the two stocks.

About Progressive

The Progressive Corporation, an insurance holding company, provides personal and commercial auto, personal residential and commercial property, business related general liability, and other specialty property-casualty insurance products and related services in the United States. It operates in three segments: Personal Lines, Commercial Lines, and Property. The Personal Lines segment writes insurance for personal autos and recreational vehicles (RV). This segment's products include personal auto insurance; and special lines products, including insurance for motorcycles, ATVs, RVs, watercrafts, snowmobiles, and related products. The Commercial Lines segment provides auto-related liability and physical damage insurance, and business-related general liability and property insurance for autos, vans, and pick-up trucks used by small businesses, as well as non-fleet taxis, black-car services, and airport taxis; tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses, and long-haul operators; dump trucks used by light contractors and heavy constructions; log trucks and garbage trucks used by dirt, sand and gravel, logging, garbage/debris removal, and coal-type businesses; and tow trucks and wreckers used in towing services and gas/service station businesses. The Property segment writes residential property insurance for homeowners, other property owners, and renters, as well as offers manufactured homes, personal umbrella insurance, and primary and excess flood insurance. The company offers policy issuance and claims adjusting services; acts as an agent to homeowners, general liability, workers' compensation insurance, and other products; and reinsurance services. It sells its products through independent insurance agencies, as well as through mobile applications and over the phone. The Progressive Corporation was founded in 1937 and is headquartered in Mayfield Village, Ohio.

About Majestic Capital

Majestic Capital, Ltd., through its subsidiaries, provides workers’ compensation insurance products. The company underwrites workers’ compensation insurance products through independent insurance brokers and agents to various size businesses; and excess and frequency coverage policies to self-insured entities. It offers primary workers’ compensation insurance to employers in Alaska, Arizona, California, Florida, Hawaii, Idaho, Illinois, Montana, Nevada, New Jersey, New Mexico, New York, Oregon, Utah, Virginia, and Washington. The company also engages in underwriting reinsurance. In addition, it offers various management services, including general management, underwriting, risk assessment, general recordkeeping, and regulatory compliance services; safety and loss control services; and claims management services to self-insured groups under fee-for-service arrangements. Further, the company acts as a broker for insurers and places the excess coverage for the groups. It serves transportation, healthcare, wholesale and retail, manufacturing, and hospitality industries; contractors; and colleges and universities. Majestic Capital, Ltd. was formerly known as CRM Holdings, Ltd. and changed its name to Majestic Capital, Ltd. in May 2010. Majestic Capital, Ltd. was founded in 1999 and is based in Hamilton, Bermuda.