Financial Analysis: Protector Forsikring ASA (OTCMKTS:PSKRF) & Ambac Financial Group (NYSE:AMBC)

Protector Forsikring ASA (OTCMKTS:PSKRF) and Ambac Financial Group (NYSE:AMBC) are both financial services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Institutional and Insider Ownership

84.5% of Ambac Financial Group shares are held by institutional investors. 3.4% of Ambac Financial Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Protector Forsikring ASA and Ambac Financial Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Protector Forsikring ASA	0	0	0	0	N/A
Ambac Financial Group	0	0	1	0	3.00

Ambac Financial Group has a consensus target price of $18.00, suggesting a potential upside of 25.00%. Given Ambac Financial Group’s higher probable upside, analysts clearly believe Ambac Financial Group is more favorable than Protector Forsikring ASA.

Profitability

This table compares Protector Forsikring ASA and Ambac Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Protector Forsikring ASA	N/A	N/A	N/A
Ambac Financial Group	1.48%	6.99%	1.15%

Valuation and Earnings

This table compares Protector Forsikring ASA and Ambac Financial Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Protector Forsikring ASA	N/A	N/A	N/A	N/A	N/A
Ambac Financial Group	$269.00 million	2.42	$4.00 million	$0.15	96.01

Ambac Financial Group has higher revenue and earnings than Protector Forsikring ASA.

Summary

Ambac Financial Group beats Protector Forsikring ASA on 8 of the 8 factors compared between the two stocks.

About Protector Forsikring ASA

Protector Forsikring ASA, operates as a non-life insurance company, provides various insurance products to the commercial and public sectors, and the grouped insurance schemes markets in Norway, Denmark, Sweden, the United Kingdom, and Finland. It operates in Commercial Lines of Business and Public Lines of Business segments. The company offers personal insurance, including personal and collective accident, critical illness, group life, health, and travel insurance; motor insurance; property insurance; and liability insurance. It sells its products through insurance brokers and agents. Protector Forsikring ASA was founded in 2003 and is headquartered in Oslo, Norway.

About Ambac Financial Group

Ambac Financial Group, Inc. operates as a financial services holding company. It operates three businesses: Specialty Property and Casualty Insurance, Insurance Distribution, and Legacy Financial Guarantee (LFG) Insurance. The Specialty Property and Casualty Insurance business provides specialty property and casualty program insurance with a focus commercial and personal liability risks. The Insurance Distribution business includes the specialty property and casualty insurance distribution business, which includes managing general agents and underwriters, insurance wholesalers, brokers, and other distribution businesses. The LFG Insurance business offers financial guarantee insurance policies that provide an unconditional and irrevocable guarantee, which protects the holder of a debt obligation against non-payment when due of the principal and interest on the obligations guaranteed. Ambac Financial Group, Inc. was incorporated in 1991 and is headquartered in New York, New York.