Amica vs Chubb Which Offers More Value?

Amica Mutual Insurance Company and Chubb Limited are two well-known insurance companies that have been in the market for many years. Amica is known for its excellent customer service and customizable insurance policies, while Chubb is known for its global presence and financial stability. Both companies have strong financial performances, but investors may want to consider factors such as company size, growth potential, and dividend yield when comparing their stocks. It is essential to conduct thorough research and analysis before making an investment decision between Amica and Chubb stocks.

Amica or Chubb?

When comparing Amica 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 Amica 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. Amica has a dividend yield of 4.48%, while Chubb has a dividend yield of 1.61%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amica reports a 5-year dividend growth of 0.00% year and a payout ratio of -240.00%. 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 Amica P/E ratio at -53.74 and Chubb's P/E ratio at 11.15. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amica P/B ratio is 0.42 while Chubb's P/B ratio is 1.70.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amica has seen a 5-year revenue growth of -0.02%, while Chubb's is 0.72%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amica's ROE at -0.76% and Chubb's ROE at 16.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are zł55.20 for Amica and $275.00 for Chubb. Over the past year, Amica's prices ranged from zł54.00 to zł86.00, with a yearly change of 59.26%. Chubb's prices fluctuated between $216.91 and $302.05, with a yearly change of 39.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.