Travelers Companies (NYSE: TRV) and Endurance Specialty (NYSE:ENH) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Valuation and Earnings
This table compares Travelers Companies and Endurance Specialty’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Travelers Companies||$28.90 billion||1.33||$2.06 billion||$7.31||19.36|
Institutional & Insider Ownership
80.2% of Travelers Companies shares are held by institutional investors. Comparatively, 82.7% of Endurance Specialty shares are held by institutional investors. 0.8% of Travelers Companies shares are held by company insiders. Comparatively, 5.8% of Endurance Specialty shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for Travelers Companies and Endurance Specialty, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Travelers Companies presently has a consensus price target of $136.57, suggesting a potential downside of 3.48%. Given Travelers Companies’ higher probable upside, analysts plainly believe Travelers Companies is more favorable than Endurance Specialty.
Travelers Companies pays an annual dividend of $2.88 per share and has a dividend yield of 2.0%. Endurance Specialty pays an annual dividend of $1.52 per share and has a dividend yield of 1.6%. Travelers Companies pays out 39.4% of its earnings in the form of a dividend. Endurance Specialty pays out 30.8% 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 7 consecutive years and Endurance Specialty has increased its dividend for 9 consecutive years.
This table compares Travelers Companies and Endurance Specialty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Travelers Companies beats Endurance Specialty on 9 of the 13 factors compared between the two stocks.
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.
Endurance Specialty Company Profile
Endurance Specialty Holdings Ltd. is a holding company. The Company, through its operating subsidiaries in Bermuda, the United States and the United Kingdom, focuses on underwriting specialty lines of personal and commercial property, and casualty insurance and reinsurance. It operates through two segments: Insurance and Reinsurance. In the Insurance segment, it writes agriculture, casualty and other specialty, professional lines, and property, marine/energy and aviation insurance. In the Reinsurance segment, it writes catastrophe, property, casualty, professional lines and specialty reinsurance. Its Insurance and Reinsurance segments both include property-related coverages, which provide insurance or reinsurance of an insurable interest in tangible property for property loss, damage or loss of use. In addition, its Insurance and Reinsurance segments include various casualty insurance and reinsurance coverages, which are concerned with the losses caused by injuries to third parties.
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