Comparing Travelers Companies (NYSE:TRV) & Sampo (OTCMKTS:SAXPY)

Sampo (OTCMKTS:SAXPY) and Travelers Companies (NYSE:TRV) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Volatility and Risk

Sampo has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Travelers Companies has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Sampo shares are held by institutional investors. Comparatively, 82.4% of Travelers Companies shares are held by institutional investors. 1.4% of Travelers Companies 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.

Dividends

Sampo pays an annual dividend of $0.35 per share and has a dividend yield of 1.6%. Travelers Companies pays an annual dividend of $5.00 per share and has a dividend yield of 1.2%. Sampo pays out 33.3% of its earnings in the form of a dividend. Travelers Companies pays out 13.1% 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 increased its dividend for 21 consecutive years.

Analyst Ratings

This is a summary of current ratings for Sampo and Travelers Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sampo	0	2	2	1	2.80
Travelers Companies	4	15	5	2	2.19

Travelers Companies has a consensus price target of $370.83, indicating a potential downside of 7.91%. Given Travelers Companies’ higher possible upside, analysts plainly believe Travelers Companies is more favorable than Sampo.

Profitability

This table compares Sampo and Travelers Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sampo	N/A	18.60%	5.58%
Travelers Companies	17.03%	26.19%	5.82%

Valuation and Earnings

This table compares Sampo and Travelers Companies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sampo	$13.08 billion	9.10	$2.26 billion	$1.05	21.33
Travelers Companies	$48.92 billion	1.69	$6.29 billion	$38.14	10.56

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

Summary

Travelers Companies beats Sampo on 14 of the 18 factors compared between the two stocks.

About Sampo

Sampo Oyj is a Finnish insurance group headquartered in Helsinki. Founded in 1909, the company has shifted its focus over time toward property and casualty insurance and now serves customers in the Nordic region and the United Kingdom. Its businesses include If, which provides insurance across the Nordic countries and the Baltic region; Topdanmark, which operates in Denmark; and Hastings, a UK-focused insurer. Their offerings include motor, home, travel, personal and commercial insurance products.

About Travelers Companies

The Travelers Companies, Inc. is a property and casualty insurance provider serving individuals, businesses and organizations. Its products include personal auto and homeowners insurance, as well as commercial coverage such as property, general liability, workers’ compensation and commercial auto insurance. The company also provides surety bonds and specialty insurance, including coverage for businesses and professional services. Travelers distributes many of its products through independent agents and brokers.