Everest Re Group (NYSE:RE) and Chubb (NYSE:CB) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.
Risk and Volatility
Everest Re Group has a beta of 0.33, indicating that its stock price is 67% 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.
93.3% of Everest Re Group shares are held by institutional investors. Comparatively, 88.7% of Chubb shares are held by institutional investors. 1.3% of Everest Re Group shares are held by insiders. Comparatively, 0.4% of Chubb shares are held by 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.
This table compares Everest Re Group and Chubb’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Everest Re Group||1.40%||2.33%||0.79%|
Everest Re Group pays an annual dividend of $5.60 per share and has a dividend yield of 2.6%. Chubb pays an annual dividend of $2.92 per share and has a dividend yield of 2.1%. Everest Re Group pays out 120.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chubb pays out 30.9% of its earnings in the form of a dividend. Everest Re Group has increased its dividend for 6 consecutive years and Chubb has increased its dividend for 53 consecutive years.
This is a breakdown of current ratings and price targets for Everest Re Group and Chubb, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Everest Re Group||0||6||1||0||2.14|
Everest Re Group presently has a consensus target price of $245.43, indicating a potential upside of 13.20%. Chubb has a consensus target price of $151.33, indicating a potential upside of 10.13%. Given Everest Re Group’s higher possible upside, analysts plainly believe Everest Re Group is more favorable than Chubb.
Valuation and Earnings
This table compares Everest Re Group and Chubb’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Everest Re Group||$7.38 billion||1.20||$103.55 million||$4.65||46.63|
|Chubb||$33.80 billion||1.86||$3.96 billion||$9.44||14.56|
Chubb has higher revenue and earnings than Everest Re Group. Chubb is trading at a lower price-to-earnings ratio than Everest Re Group, indicating that it is currently the more affordable of the two stocks.
Chubb beats Everest Re Group on 12 of the 17 factors compared between the two stocks.
Everest Re Group Company Profile
Everest Re Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Bermuda, and internationally. The company operates through four segments: U.S. Reinsurance, International, Bermuda, and Insurance. The U.S. Reinsurance segment writes property and casualty reinsurance; and specialty lines of business, including marine, aviation, surety, and accident and health insurance through reinsurance brokers, as well as directly with ceding companies in the Unites States. The International segment writes property and casualty reinsurance in Canada, Singapore, Brazil, Miami, and New Jersey. The Bermuda segment provides reinsurance and insurance to property and casualty markets through brokers and directly with ceding companies in Bermuda; and reinsurance to the United Kingdom and European markets. The Insurance segment writes property and casualty insurance products directly, as well as through general agents, brokers, and surplus lines brokers in the United States, Canada, and Europe. The company also provides property and casualty reinsurance and insurance coverages, such as errors and omissions liability, directors' and officers' liability, medical malpractice, and worker's compensation products. Everest Re Group, Ltd. was founded in 1973 and is headquartered in Hamilton, Bermuda.
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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