Critical Comparison: Axis Capital (NYSE:AXS) and Crawford & Company (NYSE:CRD.B)

Crawford & Company (NYSE:CRD.B) and Axis Capital (NYSE:AXS) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Dividends

Crawford & Company pays an annual dividend of $0.32 per share and has a dividend yield of 2.8%. Axis Capital pays an annual dividend of $1.76 per share and has a dividend yield of 1.6%. Crawford & Company pays out 59.3% of its earnings in the form of a dividend. Axis Capital pays out 13.4% 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.

Volatility & Risk

Crawford & Company has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Axis Capital has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Earnings and Valuation

This table compares Crawford & Company and Axis Capital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crawford & Company	$1.31 billion	0.42	$19.63 million	$0.54	21.31
Axis Capital	$6.56 billion	1.18	$1.01 billion	$13.09	8.26

Axis Capital has higher revenue and earnings than Crawford & Company. Axis Capital is trading at a lower price-to-earnings ratio than Crawford & Company, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Crawford & Company and Axis Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crawford & Company	0	1	0	0	2.00
Axis Capital	0	5	9	0	2.64

Axis Capital has a consensus target price of $120.00, indicating a potential upside of 11.00%. Given Axis Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Axis Capital is more favorable than Crawford & Company.

Profitability

This table compares Crawford & Company and Axis Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crawford & Company	2.01%	29.17%	6.80%
Axis Capital	14.62%	16.61%	2.71%

Insider and Institutional Ownership

11.0% of Crawford & Company shares are owned by institutional investors. Comparatively, 93.4% of Axis Capital shares are owned by institutional investors. 51.0% of Crawford & Company shares are owned by insiders. Comparatively, 0.6% of Axis Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Axis Capital beats Crawford & Company on 10 of the 16 factors compared between the two stocks.

About Crawford & Company

Crawford & Company is a global provider of claims management and related services for insurers, businesses, brokers and public-sector organizations. Founded in 1941 and headquartered in Atlanta, Georgia, the company serves clients across a broad range of industries and geographies. Its services include property and casualty claims adjusting, workers’ compensation and other third-party claims administration, medical management, and support for catastrophe response. Crawford also provides technology-enabled claims solutions and outsourcing services designed to help clients manage claims throughout their lifecycle.

About Axis Capital

AXIS Capital Holdings Limited is a global specialty insurer and reinsurer headquartered in Bermuda. Founded in 2001, the company serves businesses and other clients through insurance and reinsurance operations. Its insurance offerings include coverage for property and casualty risks, professional liability, cyber, marine, aviation, energy, and accident and health. Its reinsurance business provides protection to other insurers across property, casualty, and specialty lines. AXIS operates in markets around the world, including North America, Europe, and Asia-Pacific.