AMP vs Chubb Which Is a Better Investment?

AMP Limited and Chubb Limited are two well-known companies in the financial sector. AMP is an Australian financial services company that offers a range of wealth management and insurance products, while Chubb is a global insurance company that provides a wide variety of coverage options. Both companies have seen fluctuations in their stock prices over the years, with AMP facing challenges related to regulatory issues and Chubb benefiting from its strong global presence and diverse product offerings. Investors interested in these stocks should carefully consider the financial health and performance of both companies before making any investment decisions.

AMP or Chubb?

When comparing AMP 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 AMP 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. AMP has a dividend yield of 2.98%, while Chubb has a dividend yield of 1.57%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AMP reports a 5-year dividend growth of 0.00% year and a payout ratio of 103.31%. 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 AMP P/E ratio at 32.46 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. AMP P/B ratio is 1.06 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, AMP has seen a 5-year revenue growth of -0.67%, while Chubb's is 0.72%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AMP's ROE at 3.19% and Chubb's ROE at 16.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.66 for AMP and $281.78 for Chubb. Over the past year, AMP's prices ranged from $0.58 to $0.94, with a yearly change of 62.07%. 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.