The Travelers Companies (NYSE:TRV) and MBIA (NYSE:MBI) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for The Travelers Companies and MBIA, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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The Travelers Companies | 3 | 10 | 5 | 0 | 2.11 |
MBIA | 0 | 0 | 0 | 0 | N/A |
The Travelers Companies presently has a consensus price target of $135.20, suggesting a potential downside of 10.10%. Given The Travelers Companies' higher probable upside, equities analysts plainly believe The Travelers Companies is more favorable than MBIA.
Profitability
This table compares The Travelers Companies and MBIA's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
The Travelers Companies | 7.13% | 8.63% | 2.04% |
MBIA | N/A | -47.86% | -3.43% |
Institutional & Insider Ownership
81.8% of The Travelers Companies shares are held by institutional investors. Comparatively, 75.1% of MBIA shares are held by institutional investors. 0.8% of The Travelers Companies shares are held by company insiders. Comparatively, 8.8% of MBIA shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares The Travelers Companies and MBIA's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
The Travelers Companies | $31.58 billion | 1.20 | $2.62 billion | $9.60 | 15.67 |
MBIA | $280 million | 1.47 | $-359,000,000.00 | N/A | N/A |
The Travelers Companies has higher revenue and earnings than MBIA.
Volatility and Risk
The Travelers Companies has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, MBIA has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
Summary
The Travelers Companies beats MBIA on 9 of the 12 factors compared between the two stocks.