Safety Insurance Group (NASDAQ:SAFT) and The Travelers Companies (NYSE:TRV) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Insider & Institutional Ownership
79.8% of Safety Insurance Group shares are owned by institutional investors. Comparatively, 81.8% of The Travelers Companies shares are owned by institutional investors. 4.8% of Safety Insurance Group shares are owned by insiders. Comparatively, 0.8% of The Travelers Companies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Safety Insurance Group has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, The Travelers Companies has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for Safety Insurance Group and The Travelers Companies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Safety Insurance Group | 0 | 0 | 0 | 0 | N/A |
The Travelers Companies | 3 | 10 | 5 | 0 | 2.11 |
The Travelers Companies has a consensus price target of $135.20, suggesting a potential downside of 10.42%. Given The Travelers Companies' higher possible upside, analysts clearly believe The Travelers Companies is more favorable than Safety Insurance Group.
Dividends
Safety Insurance Group pays an annual dividend of $3.60 per share and has a dividend yield of 4.5%. The Travelers Companies pays an annual dividend of $3.40 per share and has a dividend yield of 2.3%. The Travelers Companies pays out 35.4% of its earnings in the form of a dividend. Safety Insurance Group has raised its dividend for 1 consecutive years and The Travelers Companies has raised its dividend for 16 consecutive years.
Profitability
This table compares Safety Insurance Group and The Travelers Companies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Safety Insurance Group | 13.57% | 14.19% | 5.71% |
The Travelers Companies | 7.13% | 8.63% | 2.04% |
Earnings & Valuation
This table compares Safety Insurance Group and The Travelers Companies' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Safety Insurance Group | $877.75 million | 1.37 | $99.60 million | N/A | N/A |
The Travelers Companies | $31.58 billion | 1.20 | $2.62 billion | $9.60 | 15.70 |
The Travelers Companies has higher revenue and earnings than Safety Insurance Group.
Summary
The Travelers Companies beats Safety Insurance Group on 8 of the 15 factors compared between the two stocks.