ProAssurance (NYSE: PRA) and Travelers Companies (NYSE:TRV) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.
This is a breakdown of recent ratings for ProAssurance and Travelers Companies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ProAssurance pays an annual dividend of $1.24 per share and has a dividend yield of 2.5%. Travelers Companies pays an annual dividend of $2.88 per share and has a dividend yield of 2.0%. ProAssurance pays out 62.3% of its earnings in the form of a dividend. Travelers Companies pays out 39.4% 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. Travelers Companies has raised its dividend for 9 consecutive years.
Risk & Volatility
ProAssurance has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Travelers Companies has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.
Valuation and Earnings
This table compares ProAssurance and Travelers Companies’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ProAssurance||$866.15 million||3.09||$107.26 million||$1.99||25.13|
|Travelers Companies||$28.90 billion||1.33||$2.06 billion||$7.31||19.33|
Travelers Companies has higher revenue and earnings than ProAssurance. Travelers Companies is trading at a lower price-to-earnings ratio than ProAssurance, indicating that it is currently the more affordable of the two stocks.
This table compares ProAssurance and Travelers Companies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
82.7% of ProAssurance shares are owned by institutional investors. Comparatively, 80.2% of Travelers Companies shares are owned by institutional investors. 1.8% of ProAssurance shares are owned by company insiders. Comparatively, 0.8% of Travelers Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Travelers Companies beats ProAssurance on 9 of the 17 factors compared between the two stocks.
ProAssurance Company Profile
ProAssurance Corporation (ProAssurance) is a holding company for property and casualty insurance companies. The Company provides professional liability insurance for healthcare professionals and facilities, professional liability insurance for attorneys, liability insurance for medical technology and life sciences risks, and workers’ compensation insurance. The Company operates through four segments. The Specialty property and casualty segment includes the Company’s professional liability business, and medical technology and life sciences business. The Workers’ compensation segment includes its workers’ compensation business. Lloyd’s Syndicate 1729 (Syndicate 1729) segment includes business of Syndicate 1729, which underwrites risks over a range of property and casualty insurance and reinsurance lines. The Corporate segment includes the Company’s investment operations managed at the corporate level and non-premium revenues generated outside of its insurance entities.
Travelers Companies Company Profile
The Travelers Companies, Inc. is a holding company. The Company’s segments include Business and International Insurance; Bond & Specialty Insurance, and Personal Insurance. Through its subsidiaries, it provides commercial and personal property and casualty insurance products and services. The Business and International Insurance segment offers property and casualty insurance and insurance related services to its clients, in the United States and in Canada, as well as in the United Kingdom, the Republic of Ireland, Brazil and throughout other parts of the world. The Bond & Specialty Insurance segment provides surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to a range of primarily domestic customers, utilizing various degrees of financially-based underwriting approaches. The Personal Insurance segment writes a range of property and casualty insurance covering individuals’ personal risks.
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