Willis Towers Watson (NASDAQ: WLTW) and Navigators Group (NASDAQ:NAVG) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.
Volatility and Risk
Willis Towers Watson has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Navigators Group has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.
Willis Towers Watson pays an annual dividend of $2.12 per share and has a dividend yield of 1.4%. Navigators Group pays an annual dividend of $0.28 per share and has a dividend yield of 0.5%. Willis Towers Watson pays out 50.7% of its earnings in the form of a dividend. Navigators Group pays out 21.1% 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.
This is a breakdown of recent recommendations for Willis Towers Watson and Navigators Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Willis Towers Watson||2||3||9||0||2.50|
Willis Towers Watson currently has a consensus price target of $171.75, suggesting a potential upside of 11.40%. Navigators Group has a consensus price target of $56.67, suggesting a potential downside of 1.71%. Given Willis Towers Watson’s stronger consensus rating and higher possible upside, equities analysts clearly believe Willis Towers Watson is more favorable than Navigators Group.
Valuation & Earnings
This table compares Willis Towers Watson and Navigators Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Willis Towers Watson||$8.20 billion||2.49||$568.00 million||$4.18||36.88|
|Navigators Group||$1.31 billion||1.30||$40.49 million||$1.33||43.35|
Willis Towers Watson has higher revenue and earnings than Navigators Group. Willis Towers Watson is trading at a lower price-to-earnings ratio than Navigators Group, indicating that it is currently the more affordable of the two stocks.
This table compares Willis Towers Watson and Navigators Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Willis Towers Watson||6.93%||11.25%||3.56%|
Institutional and Insider Ownership
93.8% of Willis Towers Watson shares are held by institutional investors. Comparatively, 76.4% of Navigators Group shares are held by institutional investors. 6.7% of Willis Towers Watson shares are held by company insiders. Comparatively, 24.1% of Navigators Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Willis Towers Watson beats Navigators Group on 13 of the 16 factors compared between the two stocks.
Willis Towers Watson Company Profile
Willis Towers Watson Public Limited Company (Willis Towers Watson) is a holding company. The Company operates as a global advisory, broking and solutions company. It is engaged in offering risk management, insurance broking, consulting, technology and solutions, and private exchanges. The Company operates through eight segments: Willis International; Willis North America; Willis Capital, Wholesale & Reinsurance (CWR); Willis GB; Towers Watson Benefits; Towers Watson Exchange Solutions; Towers Watson Risk and Financial Services; and Towers Watson Talent and Rewards. The Willis GB segment comprises four business units: Property and Casualty, Transport, Financial Lines and Retail Networks. The Willis Capital Wholesale and Reinsurance segment includes Willis Re; Willis Capital Markets & Advisory; Willis’ wholesale business, and Willis Portfolio Underwriting Services. The Willis North America segment provides risk management, insurance brokerage and related risk services.
Navigators Group Company Profile
The Navigators Group, Inc. is an insurance holding company. The Company is an international insurance company focused on marine insurance. The Company’s segments include U.S. Insurance, International Insurance (Int’l Insurance), Global Reinsurance (GlobalRe) and Corporate. The Company’s Property and Casualty (P&C) insurance business primarily offers general liability coverage, and umbrella and excess liability coverage to commercial enterprises through its U.S. Insurance and Int’l Insurance segments. It also offers reinsurance products through its GlobalRe segment. It distributes its products through international, national and regional, retail and wholesale insurance brokers. The Company’s U.S. Insurance and Int’l Insurance segments consists of three segments, such as Marine, Property and Casualty (P&C) and Professional Liability. Its GlobalRe products include accident & health (A&H), marine, P&C and professional liability.
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