The Travelers Companies (NYSE: TRV) and Meadowbrook Insurance Group (NYSE:MIG) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.
This table compares The Travelers Companies and Meadowbrook Insurance Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Travelers Companies||10.15%||11.68%||2.73%|
|Meadowbrook Insurance Group||4.54%||7.19%||1.16%|
The Travelers Companies pays an annual dividend of $2.88 per share and has a dividend yield of 2.3%. Meadowbrook Insurance Group does not pay a dividend. The Travelers Companies pays out 28.8% of its earnings in the form of a dividend. The Travelers Companies has raised its dividend for 8 consecutive years.
This is a summary of current ratings and price targets for The Travelers Companies and Meadowbrook Insurance Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Travelers Companies||4||7||6||0||2.12|
|Meadowbrook Insurance Group||0||0||0||0||N/A|
The Travelers Companies currently has a consensus target price of $125.30, suggesting a potential downside of 0.25%. Given The Travelers Companies’ higher possible upside, equities analysts plainly believe The Travelers Companies is more favorable than Meadowbrook Insurance Group.
Valuation and Earnings
This table compares The Travelers Companies and Meadowbrook Insurance Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|The Travelers Companies||$28.15 billion||1.23||$4.86 billion||$10.01||12.55|
|Meadowbrook Insurance Group||N/A||N/A||N/A||N/A||N/A|
The Travelers Companies has higher revenue and earnings than Meadowbrook Insurance Group.
Insider & Institutional Ownership
77.5% of The Travelers Companies shares are owned by institutional investors. 0.8% of The Travelers Companies 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.
The Travelers Companies beats Meadowbrook Insurance Group on 10 of the 11 factors compared between the two stocks.
The 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.
Meadowbrook Insurance Group Company Profile
Meadowbrook Insurance Group, Inc. (Meadowbrook) is a holding company. The Company is a commercial insurance underwriter and insurance administration services company. The Company markets and underwrites specialty property and casualty insurance programs and products through a network of independent retail agents, wholesalers, program administrators and general agents. The Company’s products include Admitted Programs and Standard Market Products, Main Street Excess and Surplus Lines, Non-Admitted Programs, and Specialty Market Products. The Company is also involved in a range of activities, including program and product design, underwriting risk selection and policy issuance, claims administration and handling, loss prevention and control and reinsurance. The Company also provides the following services to its fee-for-service and agency clients: administration of risk-bearing entities and agency services.
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