ERIE vs. TRV, ALL, ACGL, MKL, WRB, CINF, FNF, CNA, ORI, and RLI
Should you be buying Erie Indemnity stock or one of its competitors? The main competitors of Erie Indemnity include Travelers Companies (TRV), Allstate (ALL), Arch Capital Group (ACGL), Markel Group (MKL), W. R. Berkley (WRB), Cincinnati Financial (CINF), Fidelity National Financial (FNF), CNA Financial (CNA), Old Republic International (ORI), and RLI (RLI). These companies are all part of the "property & casualty insurance" industry.
Erie Indemnity (NASDAQ:ERIE) and Travelers Companies (NYSE:TRV) are both large-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, media sentiment, analyst recommendations, community ranking, valuation, profitability, dividends and risk.
Erie Indemnity has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, Travelers Companies has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.
Travelers Companies has higher revenue and earnings than Erie Indemnity. Travelers Companies is trading at a lower price-to-earnings ratio than Erie Indemnity, indicating that it is currently the more affordable of the two stocks.
Erie Indemnity pays an annual dividend of $5.10 per share and has a dividend yield of 1.4%. Travelers Companies pays an annual dividend of $4.00 per share and has a dividend yield of 1.9%. Erie Indemnity pays out 55.1% of its earnings in the form of a dividend. Travelers Companies pays out 29.7% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
33.7% of Erie Indemnity shares are held by institutional investors. Comparatively, 82.5% of Travelers Companies shares are held by institutional investors. 45.8% of Erie Indemnity shares are held by insiders. Comparatively, 1.3% of Travelers Companies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
In the previous week, Travelers Companies had 17 more articles in the media than Erie Indemnity. MarketBeat recorded 19 mentions for Travelers Companies and 2 mentions for Erie Indemnity. Erie Indemnity's average media sentiment score of 0.92 beat Travelers Companies' score of 0.52 indicating that Erie Indemnity is being referred to more favorably in the media.
Travelers Companies received 327 more outperform votes than Erie Indemnity when rated by MarketBeat users. However, 63.59% of users gave Erie Indemnity an outperform vote while only 54.20% of users gave Travelers Companies an outperform vote.
Erie Indemnity has a net margin of 14.26% compared to Travelers Companies' net margin of 7.32%. Erie Indemnity's return on equity of 29.60% beat Travelers Companies' return on equity.
Travelers Companies has a consensus price target of $222.65, suggesting a potential upside of 3.22%. Given Travelers Companies' higher probable upside, analysts clearly believe Travelers Companies is more favorable than Erie Indemnity.
Summary
Travelers Companies beats Erie Indemnity on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ERIE and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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