Comparing Fidelis Insurance (NYSE:FIHL) & Travelers Companies (NYSE:TRV)

Travelers Companies (NYSE:TRV) and Fidelis Insurance (NYSE:FIHL) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Risk & Volatility

Travelers Companies has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Fidelis Insurance has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.

Profitability

This table compares Travelers Companies and Fidelis Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Travelers Companies	10.02%	17.69%	3.50%
Fidelis Insurance	20.17%	15.27%	3.36%

Analyst Ratings

This is a summary of current recommendations and price targets for Travelers Companies and Fidelis Insurance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travelers Companies	5	12	5	2	2.17
Fidelis Insurance	0	3	3	0	2.50

Travelers Companies presently has a consensus target price of $251.70, suggesting a potential upside of 3.21%. Fidelis Insurance has a consensus target price of $21.50, suggesting a potential upside of 11.11%. Given Fidelis Insurance’s stronger consensus rating and higher probable upside, analysts plainly believe Fidelis Insurance is more favorable than Travelers Companies.

Earnings and Valuation

This table compares Travelers Companies and Fidelis Insurance”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Travelers Companies	$45.35 billion	1.22	$2.99 billion	$19.50	12.51
Fidelis Insurance	$3.60 billion	0.63	$2.13 billion	$3.96	4.89

Travelers Companies has higher revenue and earnings than Fidelis Insurance. Fidelis Insurance is trading at a lower price-to-earnings ratio than Travelers Companies, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

82.4% of Travelers Companies shares are owned by institutional investors. Comparatively, 82.0% of Fidelis Insurance shares are owned by institutional investors. 1.3% of Travelers Companies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Travelers Companies pays an annual dividend of $4.20 per share and has a dividend yield of 1.7%. Fidelis Insurance pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Travelers Companies pays out 21.5% of its earnings in the form of a dividend. Fidelis Insurance pays out 10.1% 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. Travelers Companies has raised its dividend for 20 consecutive years. Fidelis Insurance is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Travelers Companies beats Fidelis Insurance on 13 of the 18 factors compared between the two stocks.

About Travelers Companies

The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United States and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance. The Business Insurance segment offers workers’ compensation, commercial automobile and property, general liability, commercial multi-peril, employers’ liability, public and product liability, professional indemnity, marine, aviation, onshore and offshore energy, construction, terrorism, personal accident, and kidnap and ransom insurance products. This segment operates through select accounts, which serve small businesses; commercial accounts that serve mid-sized businesses; national accounts, which serve large companies; and national property and other that serve large and mid-sized customers, commercial trucking industry, and agricultural businesses, as well as markets and distributes its products through brokers, wholesale agents, and program managers. The Bond & Specialty Insurance segment provides surety, fidelity, management and professional liability, and other property and casualty coverages and related risk management services through independent agencies and brokers. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners’ insurance to individuals through independent agencies and brokers. The Travelers Companies, Inc. was founded in 1853 and is based in New York, New York.

About Fidelis Insurance

Fidelis Insurance Holdings Limited, a specialty insurer, provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, as well as other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.