Fortegra Financial (NYSE: FRF) and Chubb (NYSE:CB) are both financials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.
Volatility & Risk
Fortegra Financial has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Chubb has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.
Institutional & Insider Ownership
89.2% of Chubb shares are owned by institutional investors. 0.4% of Chubb shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Fortegra Financial and Chubb’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Chubb||$32.46 billion||2.05||$3.86 billion||$8.82||16.22|
Chubb has higher revenue and earnings than Fortegra Financial. Fortegra Financial is trading at a lower price-to-earnings ratio than Chubb, indicating that it is currently the more affordable of the two stocks.
Chubb pays an annual dividend of $2.84 per share and has a dividend yield of 2.0%. Fortegra Financial does not pay a dividend. Chubb pays out 32.2% of its earnings in the form of a dividend. Chubb has raised its dividend for 52 consecutive years.
This table compares Fortegra Financial and Chubb’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings for Fortegra Financial and Chubb, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Chubb has a consensus price target of $165.00, suggesting a potential upside of 15.31%. Given Chubb’s higher possible upside, analysts clearly believe Chubb is more favorable than Fortegra Financial.
Chubb beats Fortegra Financial on 13 of the 14 factors compared between the two stocks.
About Fortegra Financial
Fortegra Financial Corporation is specializing in insurance products and services. The Company’s business process outsourcing segment offers various administrative services under the Consecta and Pacific Benefits Group Northwest, LLC brand names to insurance and other financial services companies. The Company’s Payment Protection segment delivers credit insurance, debt protection, warranty and service contracts, and motor club solutions under the Life of the South, Continental Car Club, United Motor Club, and Auto Knight Motor Club brand names to consumer finance companies, regional banks, community banks, retailers, small loan companies, warranty administrators, automobile dealers, vacation ownership developers, and credit unions.
Chubb Limited is a holding company. The Company, through its subsidiaries, provides a range of insurance and reinsurance products and services to clients around the world. Its segments include North America Commercial property and casualty (P&C) Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance and Life Insurance. It offers commercial insurance products and service offerings, such as risk management programs, loss control, and engineering and complex claims management. It provides specialized insurance products to areas, such as aviation and energy. It also offers personal lines insurance coverage, including homeowners, automobile, valuables, umbrella liability and recreational marine products. In addition, it supplies personal accident, supplemental health and life insurance to individuals in select countries.
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