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

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

Profitability

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

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ambac Financial Group	$269.00 million	2.46	$4.00 million	$0.15	97.54
Protector Forsikring ASA	N/A	N/A	N/A	N/A	N/A

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

Analyst Recommendations

This is a summary of current ratings and target prices for Ambac Financial Group and Protector Forsikring ASA, as reported by MarketBeat.com.

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

Ambac Financial Group currently has a consensus target price of $18.00, suggesting a potential upside of 23.03%. Given Ambac Financial Group’s higher possible upside, equities analysts plainly believe Ambac Financial Group is more favorable than Protector Forsikring ASA.

Institutional & Insider Ownership

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

Summary

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

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.

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.