D/B/A Chubb Limited New (NYSE: CB) and National General Holdings Corp (NASDAQ:NGHC) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Institutional & Insider Ownership

86.9% of D/B/A Chubb Limited New shares are owned by institutional investors. Comparatively, 46.0% of National General Holdings Corp shares are owned by institutional investors. 0.4% of D/B/A Chubb Limited New shares are owned by company insiders. Comparatively, 3.4% of National General Holdings Corp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares D/B/A Chubb Limited New and National General Holdings Corp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
D/B/A Chubb Limited New $32.28 billion 1.99 $6.85 billion $11.37 12.11
National General Holdings Corp $4.15 billion 0.43 $249.48 million $0.72 23.04

D/B/A Chubb Limited New has higher revenue and earnings than National General Holdings Corp. D/B/A Chubb Limited New is trading at a lower price-to-earnings ratio than National General Holdings Corp, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for D/B/A Chubb Limited New and National General Holdings Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
D/B/A Chubb Limited New 1 2 8 0 2.64
National General Holdings Corp 0 1 2 0 2.67

D/B/A Chubb Limited New presently has a consensus price target of $154.22, suggesting a potential upside of 11.99%. National General Holdings Corp has a consensus price target of $25.00, suggesting a potential upside of 50.69%. Given National General Holdings Corp’s stronger consensus rating and higher possible upside, analysts plainly believe National General Holdings Corp is more favorable than D/B/A Chubb Limited New.

Volatility and Risk

D/B/A Chubb Limited New has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, National General Holdings Corp has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Profitability

This table compares D/B/A Chubb Limited New and National General Holdings Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
D/B/A Chubb Limited New 16.68% 10.18% 3.09%
National General Holdings Corp 2.13% 7.80% 1.61%

Dividends

D/B/A Chubb Limited New pays an annual dividend of $2.84 per share and has a dividend yield of 2.1%. National General Holdings Corp pays an annual dividend of $0.16 per share and has a dividend yield of 1.0%. D/B/A Chubb Limited New pays out 25.0% of its earnings in the form of a dividend. National General Holdings Corp pays out 22.2% 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. D/B/A Chubb Limited New has increased its dividend for 51 consecutive years. D/B/A Chubb Limited New is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

D/B/A Chubb Limited New beats National General Holdings Corp on 11 of the 17 factors compared between the two stocks.

About D/B/A Chubb Limited New

Chubb Limited is a holding company. The Company, through its subsidiaries, provides a range of insurance and reinsurance products and services to clients around the world. Its segments include North America Commercial property and casualty (P&C) Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance and Life Insurance. It offers commercial insurance products and service offerings, such as risk management programs, loss control, and engineering and complex claims management. It provides specialized insurance products to areas, such as aviation and energy. It also offers personal lines insurance coverage, including homeowners, automobile, valuables, umbrella liability and recreational marine products. In addition, it supplies personal accident, supplemental health and life insurance to individuals in select countries.

About National General Holdings Corp

National General Holdings Corp. is a specialty personal lines insurance holding company. Through its subsidiaries, the Company provides a range of insurance products, including personal and commercial automobile, homeowners, umbrella, recreational vehicle, supplemental health, lender-placed and other niche products. It operates through two segments: Property and Casualty (P&C) and Accident and Health (A&H). Its P&C segment offers its P&C insurance products through a network of agents, a number of affinity partners and through direct-response marketing programs. Its A&H segment provides accident and non-major medical health insurance products targeting its existing P&C policyholders and the anticipated market of employed persons who are uninsured or underinsured. The P&C segment operates its business through three distribution channels: agency, affinity and direct. The A&H segment provides supplemental accident and health insurance products.

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