Analyzing Gainsco (OTCMKTS:GANS) and Greenlight Capital Re (NASDAQ:GLRE)

Gainsco (OTCMKTS:GANS) and Greenlight Capital Re (NASDAQ:GLRE) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.

Valuation and Earnings

This table compares Gainsco and Greenlight Capital Re”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
Greenlight Capital Re	$656.17 million	0.64	$42.82 million	($0.07)	-175.00

Greenlight Capital Re has higher revenue and earnings than Gainsco.

Profitability

This table compares Gainsco and Greenlight Capital Re’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
Greenlight Capital Re	5.37%	5.75%	1.81%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Gainsco and Greenlight Capital Re, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gainsco	0	0	0	0	0.00
Greenlight Capital Re	0	1	0	0	2.00

Given Gainsco’s higher probable upside, equities analysts clearly believe Gainsco is more favorable than Greenlight Capital Re.

Institutional & Insider Ownership

41.5% of Greenlight Capital Re shares are held by institutional investors. 73.5% of Gainsco shares are held by company insiders. Comparatively, 23.5% of Greenlight Capital Re shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Greenlight Capital Re beats Gainsco on 6 of the 8 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 Greenlight Capital Re

Greenlight Capital Re, Ltd., through its subsidiaries, operates as a property and casualty reinsurance company worldwide. The company offers various property reinsurance products and services, including automobile physical damage, personal lines, and commercial lines. It also provides casualty reinsurance products and services comprising general liability, motor liability, professional liability, and worker's compensation; and accident and health, transactional liability, mortgage insurance, surety, trade credit, marine, and energy, as well as other specialty products, such as aviation, crop, cyber, political, and terrorism products. The company markets its products through reinsurance brokers. Greenlight Capital Re, Ltd. was incorporated in 2004 and is headquartered in Grand Cayman, the Cayman Islands.