Travelers Companies (NYSE:TRV) and Infinity Property and Casualty (NASDAQ:IPCC) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for Travelers Companies and Infinity Property and Casualty, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Travelers Companies 2 8 4 0 2.14
Infinity Property and Casualty 0 1 0 0 2.00

Travelers Companies currently has a consensus price target of $135.00, indicating a potential upside of 6.46%. Infinity Property and Casualty has a consensus price target of $121.00, indicating a potential downside of 15.27%. Given Travelers Companies’ stronger consensus rating and higher probable upside, analysts clearly believe Travelers Companies is more favorable than Infinity Property and Casualty.

Dividends

Travelers Companies pays an annual dividend of $3.08 per share and has a dividend yield of 2.4%. Infinity Property and Casualty pays an annual dividend of $2.32 per share and has a dividend yield of 1.6%. Travelers Companies pays out 42.3% of its earnings in the form of a dividend. Travelers Companies has raised its dividend for 9 consecutive years and Infinity Property and Casualty has raised its dividend for 10 consecutive years.

Institutional and Insider Ownership

79.4% of Travelers Companies shares are owned by institutional investors. Comparatively, 91.2% of Infinity Property and Casualty shares are owned by institutional investors. 0.8% of Travelers Companies shares are owned by insiders. Comparatively, 3.2% of Infinity Property and Casualty shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Travelers Companies and Infinity Property and Casualty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Travelers Companies 8.18% 10.86% 2.40%
Infinity Property and Casualty N/A N/A N/A

Earnings and Valuation

This table compares Travelers Companies and Infinity Property and Casualty’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Travelers Companies $28.90 billion 1.16 $2.06 billion $7.28 17.42
Infinity Property and Casualty N/A N/A N/A N/A N/A

Travelers Companies has higher revenue and earnings than Infinity Property and Casualty.

Summary

Travelers Companies beats Infinity Property and Casualty on 8 of the 12 factors compared between the two stocks.

About Travelers Companies

The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United states and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance. The Business Insurance segment offers workers' compensation, commercial automobile and property, general liability, commercial multi-peril, employers' liability, public and product liability, professional indemnity, marine, aviation, personal accident, and kidnap and ransom insurance products. This segment operates through select accounts, which serve small businesses; commercial accounts that serve mid-sized businesses; national accounts, which serve large companies; and national property and other that serve large and mid-sized customers, commercial transportation industry, and agricultural businesses, as well as markets and distributes its products through brokers, wholesale agents, program managers, and specialized retail agents. The Bond & Specialty Insurance segment provides surety, fidelity, management and professional liability, and other property and casualty insurance products. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals. The company distributes its products primarily through independent agencies and brokers. The Travelers Companies, Inc. was founded in 1853 and is based in New York, New York.

About Infinity Property and Casualty

Infinity Property and Casualty Corporation, through its subsidiaries, provides personal auto insurance products in the United States. The company offers nonstandard, commercial, and classic collector auto insurance products. It also provides reinsurance products and services. The company distributes its products primarily through a network of independent agencies and brokers. Infinity Property and Casualty Corporation was founded in 2002 and is headquartered in Birmingham, Alabama.

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