Head to Head Review: Travelers Companies (TRV) vs. National Interstate (NATL)
Travelers Companies (NYSE: TRV) and National Interstate (NASDAQ:NATL) are both financials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.
Earnings & Valuation
This table compares Travelers Companies and National Interstate’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Travelers Companies||$28.90 billion||1.29||$2.06 billion||$7.78||17.69|
This is a breakdown of recent recommendations for Travelers Companies and National Interstate, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Travelers Companies presently has a consensus target price of $136.57, suggesting a potential downside of 0.78%.
This table compares Travelers Companies and National Interstate’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
78.9% of Travelers Companies shares are held by institutional investors. Comparatively, 84.9% of National Interstate shares are held by institutional investors. 0.8% of Travelers Companies shares are held by company insiders. Comparatively, 11.8% of National Interstate shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Travelers Companies pays an annual dividend of $2.88 per share and has a dividend yield of 2.1%. National Interstate pays an annual dividend of $0.56 per share. Travelers Companies pays out 37.0% of its earnings in the form of a dividend. National Interstate pays out 40.6% 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 increased its dividend for 9 consecutive years. Travelers Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Travelers Companies beats National Interstate on 8 of the 12 factors compared between the two stocks.
About Travelers Companies
The Travelers Companies, Inc. is a holding company. The Company’s segments include Business and International Insurance; Bond & Specialty Insurance, and Personal Insurance. Through its subsidiaries, it provides commercial and personal property and casualty insurance products and services. The Business and International Insurance segment offers property and casualty insurance and insurance related services to its clients, in the United States and in Canada, as well as in the United Kingdom, the Republic of Ireland, Brazil and throughout other parts of the world. The Bond & Specialty Insurance segment provides surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to a range of primarily domestic customers, utilizing various degrees of financially-based underwriting approaches. The Personal Insurance segment writes a range of property and casualty insurance covering individuals’ personal risks.
About National Interstate
National Interstate Corporation and its subsidiaries operate as an insurance holding company that underwrites and sells traditional and alternative property and casualty insurance products to the passenger transportation, trucking and moving and storage industries, general commercial insurance to small businesses in Hawaii and Alaska and personal insurance to owners of recreational vehicles throughout the United States. The Company is a specialty property and casualty insurance company with a focus on the transportation industry. The Company operates through property and casualty insurance segment. The Company offers approximately 40 product lines in the specialty property and casualty insurance market, which it groups into approximately four general business components: alternative risk transfer (ART), transportation, specialty personal lines, and Hawaii and Alaska based on the class of business, insureds’ risk participation or geographic location.
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