American National Insurance (NASDAQ: ANAT) and D/B/A Chubb Limited New (NYSE:CB) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Risk & Volatility

American National Insurance has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, D/B/A Chubb Limited New has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Dividends

American National Insurance pays an annual dividend of $3.28 per share and has a dividend yield of 2.8%. D/B/A Chubb Limited New pays an annual dividend of $2.84 per share and has a dividend yield of 2.0%. American National Insurance pays out 45.4% of its earnings in the form of a dividend. D/B/A Chubb Limited New pays out 25.0% 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. American National Insurance has raised its dividend for 51 consecutive years. American National Insurance is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares American National Insurance and D/B/A Chubb Limited New’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American National Insurance 5.95% 2.61% 0.50%
D/B/A Chubb Limited New 16.68% 10.18% 3.09%

Earnings & Valuation

This table compares American National Insurance and D/B/A Chubb Limited New’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American National Insurance $3.28 billion 0.95 $260.52 million $7.23 15.98
D/B/A Chubb Limited New $32.28 billion 2.04 $6.85 billion $11.37 12.47

D/B/A Chubb Limited New has higher revenue and earnings than American National Insurance. D/B/A Chubb Limited New is trading at a lower price-to-earnings ratio than American National Insurance, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

65.2% of American National Insurance shares are owned by institutional investors. Comparatively, 86.9% of D/B/A Chubb Limited New shares are owned by institutional investors. 23.5% of American National Insurance shares are owned by company insiders. Comparatively, 0.4% of D/B/A Chubb Limited New shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for American National Insurance and D/B/A Chubb Limited New, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American National Insurance 0 0 0 0 N/A
D/B/A Chubb Limited New 1 2 8 0 2.64

D/B/A Chubb Limited New has a consensus price target of $154.22, suggesting a potential upside of 8.78%. Given D/B/A Chubb Limited New’s higher possible upside, analysts clearly believe D/B/A Chubb Limited New is more favorable than American National Insurance.

Summary

D/B/A Chubb Limited New beats American National Insurance on 11 of the 16 factors compared between the two stocks.

About American National Insurance

American National Insurance Company is engaged in life insurance, annuities, and property and casualty insurance. The Company also offers limited health insurance. Its family of companies includes six life insurance companies, eight property and casualty insurance companies, and various non-insurance subsidiaries. Its business segments include Life, which offers products, such as Whole Life, Term Life, Universal Life, Variable Universal Life and Credit Life Insurance; Annuity, including products, such as Deferred Annuity, Single Premium Immediate Annuity and Variable Annuity; Health, including, such as Medicare Supplement, Supplemental Insurance, Stop-Loss, Credit Disability and Medical Expense; Property and Casualty, which offers products, such as Personal Lines, Commercial Lines and Credit-Related Property Insurance products, and Corporate and Other, which consists of its invested assets that are not used to support insurance activities, and non-insurance subsidiaries.

About D/B/A Chubb Limited New

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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