Allstate vs Travelers Companies Which Is Superior?

Allstate Corporation and Travelers Companies are two major players in the insurance industry, with both companies offering a range of insurance products and services to consumers and businesses. While both companies have been successful in the insurance market, there are key differences in their stock performance and financials. Investors may want to compare the two stocks based on factors such as revenue growth, profitability, and dividend payouts to make an informed decision on which stock to invest in.

Allstate or Travelers Companies?

When comparing Allstate and Travelers Companies, 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 Allstate and Travelers Companies.

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. Allstate has a dividend yield of 1.85%, while Travelers Companies has a dividend yield of 1.99%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Allstate reports a 5-year dividend growth of 14.11% year and a payout ratio of 25.45%. On the other hand, Travelers Companies reports a 5-year dividend growth of 5.34% year and a payout ratio of 20.76%.

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 Allstate P/E ratio at 12.36 and Travelers Companies's P/E ratio at 12.93. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Allstate P/B ratio is 2.50 while Travelers Companies's P/B ratio is 2.12.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Allstate has seen a 5-year revenue growth of 0.90%, while Travelers Companies's is 0.59%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Allstate's ROE at 22.29% and Travelers Companies's ROE at 17.73%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $197.17 for Allstate and $257.43 for Travelers Companies. Over the past year, Allstate's prices ranged from $129.17 to $201.00, with a yearly change of 55.61%. Travelers Companies's prices fluctuated between $167.08 and $269.56, with a yearly change of 61.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.