Head-To-Head Analysis: Chubb (NYSE:CB) and James River Group (NYSE:JRVR)

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

Institutional and Insider Ownership

89.4% of Chubb shares are held by institutional investors. Comparatively, 96.8% of James River Group shares are held by institutional investors. 0.5% of Chubb shares are held by company insiders. Comparatively, 3.5% of James River Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Chubb and James River Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chubb $33.80 billion 2.09 $3.96 billion $9.44 16.43
James River Group $885.60 million 1.30 $63.83 million $2.33 16.27

Chubb has higher revenue and earnings than James River Group. James River Group is trading at a lower price-to-earnings ratio than Chubb, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Chubb has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, James River Group has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.

Dividends

Chubb pays an annual dividend of $3.00 per share and has a dividend yield of 1.9%. James River Group pays an annual dividend of $1.20 per share and has a dividend yield of 3.2%. Chubb pays out 31.8% of its earnings in the form of a dividend. James River Group pays out 51.5% 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. Chubb has raised its dividend for 53 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Chubb 11.00% 8.53% 2.60%
James River Group 8.50% 10.62% 2.43%

Analyst Recommendations

This is a breakdown of current recommendations for Chubb and James River Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chubb 3 4 4 1 2.25
James River Group 1 2 0 0 1.67

Chubb presently has a consensus price target of $153.91, suggesting a potential downside of 0.77%. James River Group has a consensus price target of $39.75, suggesting a potential upside of 4.83%. Given James River Group’s higher probable upside, analysts plainly believe James River Group is more favorable than Chubb.

Summary

Chubb beats James River Group on 13 of the 18 factors compared between the two stocks.

About Chubb

Chubb Limited, through its subsidiaries, provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, marine, general casualty, workers' compensation, package policies, and risk management; professional lines, marine, construction, environmental, medical, cyber risk, surety, and excess casualty; and 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. The company's North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm and ranch property, and commercial agriculture products. Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction risk; and group accident and health, and traditional and specialty personal lines for corporations, middle markets, and small customers through retail brokers, agents, and other channels. The company's 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.

About James River Group

James River Group Holdings, Ltd., through its subsidiaries, provides specialty insurance and reinsurance services in the United States. Its Excess and Surplus Lines segment underwrites liability and property insurance on an excess and surplus commercial lines basis in all states and the District of Columbia. This segment distributes its insurance policies primarily through wholesale insurance brokers. The company's Specialty Admitted Insurance segment provides workers' compensation coverage for building trades, healthcare employees, goods and services, light manufacturing, specialty transportation, agriculture, and fronting and program business in North Carolina, Tennessee, Virginia, South Carolina, Georgia, New Jersey, Missouri, Kansas, Pennsylvania, Massachusetts, Rhode Island, Alabama, Connecticut, and Mississippi. Its Casualty Reinsurance segment offers proportional and working layer casualty reinsurance to third parties and unaffiliated insurance companies. James River Group Holdings, Ltd. was founded in 2002 and is headquartered in Pembroke, Bermuda.

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