Chubb (CB) and NFP (NFP) Financial Review
Chubb (NYSE: CB) and NFP (NYSE:NFP) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.
Insider and Institutional Ownership
88.3% of Chubb shares are held by institutional investors. 0.4% of Chubb shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Chubb and NFP, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Chubb currently has a consensus price target of $159.20, suggesting a potential upside of 6.10%.
Chubb pays an annual dividend of $2.84 per share and has a dividend yield of 1.9%. NFP does not pay a dividend. Chubb pays out 34.1% of its earnings in the form of a dividend. NFP has increased its dividend for 51 consecutive years.
Earnings and Valuation
This table compares Chubb and NFP’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Chubb||$31.84 billion||2.19||$4.14 billion||$8.34||17.99|
Chubb has higher revenue and earnings than NFP. NFP is trading at a lower price-to-earnings ratio than Chubb, indicating that it is currently the more affordable of the two stocks.
This table compares Chubb and NFP’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Chubb beats NFP on 9 of the 11 factors compared between the two stocks.
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.
National Financial Partners Corp. (NFP) and its benefits, insurance and wealth management businesses provide a range of advisory and brokerage services to the Company’s clients. NFP serves corporate and high net worth individual clients throughout the United States and in Canada, with a focus on the middle market and entrepreneurs. The Company operates in three segments: the Corporate Client Group (the CCG), the Individual Client Group (the ICG) and the Advisor Services Group (the ASG). The CCG is a corporate benefits advisor in the middle market, offering independent solutions. The ICG is in the delivery of independent life insurance, annuities, long term care and wealth transfer solutions for high net worth individuals. The ASG, including NFP Securities, Inc. (NFPSI), is an independent broker-dealer and registered investment advisor. In July 2013, National Financial Partners Corp announced the completion of its acquisition by a controlled affiliate of Madison Dearborn Partners, LLC.
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