Comparing Safety Insurance Group (SAFT) and Chubb (CB)

Safety Insurance Group (NASDAQ:SAFT) and Chubb (NYSE:CB) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

This table compares Safety Insurance Group and Chubb’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Safety Insurance Group 9.95% 13.33% 5.09%
Chubb 11.72% 8.66% 2.62%

Volatility and Risk

Safety Insurance Group has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Chubb has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Insider & Institutional Ownership

83.3% of Safety Insurance Group shares are owned by institutional investors. Comparatively, 88.7% of Chubb shares are owned by institutional investors. 4.9% of Safety Insurance Group shares are owned by company insiders. Comparatively, 0.5% of Chubb shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Safety Insurance Group and Chubb, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Safety Insurance Group 0 0 0 0 N/A
Chubb 2 3 6 0 2.36

Chubb has a consensus target price of $151.33, suggesting a potential upside of 7.93%. Given Chubb’s higher possible upside, analysts clearly believe Chubb is more favorable than Safety Insurance Group.

Dividends

Safety Insurance Group pays an annual dividend of $3.20 per share and has a dividend yield of 3.5%. Chubb pays an annual dividend of $2.92 per share and has a dividend yield of 2.1%. Chubb pays out 30.9% of its earnings in the form of a dividend. Safety Insurance Group has increased its dividend for 2 consecutive years and Chubb has increased its dividend for 53 consecutive years.

Valuation & Earnings

This table compares Safety Insurance Group and Chubb’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Safety Insurance Group $836.50 million 1.70 $83.19 million N/A N/A
Chubb $33.80 billion 1.90 $3.96 billion $9.44 14.85

Chubb has higher revenue and earnings than Safety Insurance Group.

Summary

Chubb beats Safety Insurance Group on 9 of the 15 factors compared between the two stocks.

Safety Insurance Group Company Profile

Safety Insurance Group, Inc. provides private passenger and commercial automobile insurance in Massachusetts, New Hampshire, and Maine, the United States. The company's private passenger automobile policies offer coverage for bodily injury and property damage to others, no-fault personal injury coverage for the insured/insured's car occupants, and physical damage coverage for an insured's own vehicle for collision or other perils. It also provides commercial automobile policies that offer insurance for commercial vehicles used for business purposes, including private passenger-type vehicles, trucks, tractors and trailers, insure individual vehicles, and commercial fleets; and homeowners policies, which provide coverage for homes, condominiums, and apartments for losses to a dwelling and its contents from various perils, and coverage for liability to others arising from ownership or occupancy. In addition, the company offers business owners policies that cover apartments and residential condominiums, restaurants, office condominiums, processing and services businesses, special trade contractors, and wholesalers. Further, it provides personal umbrella policies, which provide personal excess liability coverage over and above the limits of individual automobile, watercraft, and homeowner's insurance policies; and commercial umbrella policies, as well as underwrites dwelling fire insurance for non-owner occupied residences. Additionally, the company offers inland marine coverage for homeowners and business owner policies; and watercraft coverage for small and medium sized pleasure crafts. It distributes its products through independent agents. The company was formerly known as Safety Holdings Inc and changed its name to Safety Insurance Group, Inc. in April 2002. Safety Insurance Group, Inc. was founded in 1979 and is based in Boston, Massachusetts.

Chubb Company Profile

Chubb Limited, through its subsidiaries, provides insurance and reinsurance products worldwide. Its North America Commercial P&C Insurance segment offers commercial property, marine, general casualty, workers' compensation, package policies, and risk management; and professional lines, marine, construction, environmental, medical, cyber risk, and excess casualty, as well as group accident and health insurance to large, middle market, and small commercial businesses in the United States, Canada, and Bermuda. Its North America Personal P&C Insurance segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, and recreational marine insurance and services in the United States and Canada. Its North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm and ranch property, as well as commercial agriculture products. Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; and specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction risk, as well as group accident and health, and traditional and specialty personal lines for large corporations, middle markets, and small customers through retail brokers, agents, and other channels. Its Global Reinsurance segment offers traditional and specialty reinsurance under the Chubb Tempest Re brand name to property and casualty companies. Its Life Insurance segment provides protection and savings products comprising whole life, endowment plans, individual term life, group term life, medical and health, personal accident, credit life, universal life, and unit linked contracts. The company was formerly known as ACE Limited and changed its name to Chubb Limited in January 2016. Chubb Limited was founded in 1985 and is headquartered in Zurich, Switzerland.

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