Comparing Fidelis Insurance (NYSE:FIHL) and Allstate (NYSE:ALL)

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

Institutional & Insider Ownership

82.0% of Fidelis Insurance shares are owned by institutional investors. Comparatively, 76.5% of Allstate shares are owned by institutional investors. 1.8% of Allstate shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Fidelis Insurance and Allstate’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelis Insurance	$3.60 billion	0.51	$2.13 billion	$4.12	3.75
Allstate	$57.09 billion	0.73	-$188.00 million	$4.53	34.67

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fidelis Insurance	23.31%	17.97%	3.87%
Allstate	2.31%	14.44%	2.04%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Fidelis Insurance and Allstate, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelis Insurance	0	4	4	0	2.50
Allstate	1	3	11	1	2.75

Fidelis Insurance currently has a consensus price target of $18.94, suggesting a potential upside of 22.49%. Allstate has a consensus price target of $174.59, suggesting a potential upside of 11.15%. Given Fidelis Insurance’s higher possible upside, equities research analysts plainly believe Fidelis Insurance is more favorable than Allstate.

Dividends

Fidelis Insurance pays an annual dividend of $0.40 per share and has a dividend yield of 2.6%. Allstate pays an annual dividend of $3.68 per share and has a dividend yield of 2.3%. Fidelis Insurance pays out 9.7% of its earnings in the form of a dividend. Allstate pays out 81.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Allstate has raised its dividend for 14 consecutive years. Fidelis Insurance is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Allstate beats Fidelis Insurance on 9 of the 17 factors compared between the two stocks.

About Fidelis Insurance

Fidelis Insurance Holdings Limited, together with its subsidiaries, provides insurance and reinsurance products 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, and 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.

About Allstate

The Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. It operates in five segments: Allstate Protection; Protection Services; Allstate Health and Benefits; Run-off Property-Liability; and Corporate and Other segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; other personal lines products; and commercial lines products through agents, contact centers, and online. The Protection Services segment provides consumer product protection; protection and insurance products, including vehicle service contracts, guaranteed asset protection, road hazard tire and wheel, and paintless dent repair protection; and roadside assistance, device and mobile data collection services, and analytic solutions using automotive telematics information, as well as identity theft protection and remediation services. This segment also offers its products under various brands, including Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity, Avail, and Allstate Identity Protection. The Allstate Health and Benefits segment provides life, accident, critical illness, short-term disability, and other health insurance products; stop-loss and fully insured group health products to employers; and short-term medical and medicare supplement insurance to individuals. The Run-off Property-Liability segment offers property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. The Corporate and Other segment provides debt services, as well as non-insurance operations. It sells its products through agents, independent agents, call and contact centers, retailers, direct to consumer, wholesale partners, and affinity groups, as well as through online and mobile applications. The Allstate Corporation was founded in 1931 and is headquartered in Northbrook, Illinois.