AL vs Chubb Which Performs Better?

AL and Chubb are two prominent players in the insurance industry, each with its own unique strengths and weaknesses. AL, or Allstate Corporation, is a well-established insurance provider known for its wide range of coverage options and strong financial performance. On the other hand, Chubb Corporation is a global insurance powerhouse with a focus on high-end clientele and specialty insurance products. Both companies have experienced fluctuating stock prices in recent years, making them interesting options for investors seeking exposure to the insurance sector.

AL or Chubb?

When comparing AL and Chubb, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AL and Chubb.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AL has a dividend yield of -%, while Chubb has a dividend yield of 1.57%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AL reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Chubb reports a 5-year dividend growth of 3.29% year and a payout ratio of 14.19%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AL P/E ratio at -16.36 and Chubb's P/E ratio at 11.45. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AL P/B ratio is -36.54 while Chubb's P/B ratio is 1.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AL has seen a 5-year revenue growth of -0.93%, while Chubb's is 0.72%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AL's ROE at 166.45% and Chubb's ROE at 16.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.58 for AL and $281.78 for Chubb. Over the past year, AL's prices ranged from HK$0.48 to HK$1.07, with a yearly change of 122.92%. Chubb's prices fluctuated between $216.26 and $302.05, with a yearly change of 39.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.