Reviewing Chubb (NYSE:CB) & Progressive (NYSE:PGR)

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Chubb (NYSE:CB) and Progressive (NYSE:PGR) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Chubb 11.00% 8.53% 2.60%
Progressive 8.69% 25.83% 6.29%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Chubb and Progressive, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chubb 3 5 5 0 2.15
Progressive 0 5 6 0 2.55

Chubb currently has a consensus price target of $154.75, suggesting a potential upside of 4.21%. Progressive has a consensus price target of $82.82, suggesting a potential upside of 20.43%. Given Progressive’s stronger consensus rating and higher possible upside, analysts plainly believe Progressive is more favorable than Chubb.

Valuation and Earnings

This table compares Chubb and Progressive’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chubb $33.80 billion 2.00 $3.96 billion $9.44 15.73
Progressive $31.98 billion 1.26 $2.62 billion $4.42 15.56

Chubb has higher revenue and earnings than Progressive. Progressive is trading at a lower price-to-earnings ratio than Chubb, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

89.5% of Chubb shares are held by institutional investors. Comparatively, 78.8% of Progressive shares are held by institutional investors. 0.5% of Chubb shares are held by insiders. Comparatively, 0.4% of Progressive shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Chubb has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Progressive has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Dividends

Chubb pays an annual dividend of $3.00 per share and has a dividend yield of 2.0%. Progressive pays an annual dividend of $0.40 per share and has a dividend yield of 0.6%. Chubb pays out 31.8% of its earnings in the form of a dividend. Progressive pays out 9.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Chubb beats Progressive on 10 of the 16 factors compared between the two stocks.

Chubb Company Profile

Chubb Limited, through its subsidiaries, provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, marine, general casualty, workers' compensation, package policies, and risk management; professional lines, marine, construction, environmental, medical, cyber risk, surety, and excess casualty; and group accident and health insurance to large, middle market, and small commercial businesses in the United States, Canada, and Bermuda. Its North America Personal P&C Insurance segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, and recreational marine insurance and services in the United States and Canada. The company's North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm and ranch property, and commercial agriculture products. Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction risk; and group accident and health, and traditional and specialty personal lines for corporations, middle markets, and small customers through retail brokers, agents, and other channels. The company's Global Reinsurance segment offers traditional and specialty reinsurance under the Chubb Tempest Re brand name to property and casualty companies. Its Life Insurance segment provides protection and savings products comprising whole life, endowment plans, individual term life, group term life, medical and health, personal accident, credit life, universal life, and unit linked contracts. The company was formerly known as ACE Limited and changed its name to Chubb Limited in January 2016. Chubb Limited was founded in 1985 and is headquartered in Zurich, Switzerland.

Progressive Company Profile

The Progressive Corporation, through its subsidiaries, provides personal and commercial auto insurance, residential property insurance, and other specialty property-casualty insurance and related services primarily in the United States. Its Personal Lines segment writes insurance for personal autos, and recreational and other vehicles. This segment's products include personal auto insurance; and special lines products, including insurance for motorcycles, ATVs, RVs, watercrafts, and snowmobiles. The company's Commercial Lines segment provides primary liability, physical damage, and other auto-related insurance for autos, vans, pick-up trucks, and dump trucks used by small businesses; tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses, and non-fleet long-haul operators; dump trucks, log trucks, and garbage trucks used by dirt, sand and gravel, logging, and coal-type businesses; tow trucks and wreckers used in towing services and gas/service station businesses; and non-fleet taxis, black-car services, and airport taxis. Its Property segment provides residential property insurance for homes, condos, manufactured homes, and renters, as well as offers personal umbrella insurance, and primary and excess flood insurance. The company also offers policy issuance and claims adjusting services; home, condominium, renters, and other insurance; and general liability and business owner's policies, and workers' compensation insurance. In addition, it offers reinsurance services. The Progressive Corporation sells its products and services through independent insurance agencies, as well as directly on Internet, and mobile devices, and over the phone. The company was founded in 1937 and is headquartered in Mayfield Village, Ohio.

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