Chubb vs Amica Which Is a Better Investment?

Both Chubb Limited and Amica Mutual Insurance Co. are prominent players in the insurance industry, particularly known for their offerings in property and casualty insurance. Chubb has a long-standing reputation for providing high-quality coverage and a strong financial performance, while Amica is also highly rated for its customer service and reliability. Investors seeking exposure to the insurance sector may be intrigued by the growth potential and stability offered by both Chubb and Amica stocks.

Chubb or Amica?

When comparing Chubb and Amica, 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 Chubb and Amica.

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. Chubb has a dividend yield of 1.25%, while Amica has a dividend yield of 4.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Chubb reports a 5-year dividend growth of 3.79% year and a payout ratio of 15.49%. On the other hand, Amica reports a 5-year dividend growth of 0.00% year and a payout ratio of -240.00%.

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 Chubb P/E ratio at 12.51 and Amica's P/E ratio at -60.10. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Chubb P/B ratio is 1.81 while Amica's P/B ratio is 0.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Chubb has seen a 5-year revenue growth of 0.85%, while Amica's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chubb's ROE at 14.76% and Amica's ROE at -0.76%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $283.91 for Chubb and zł61.40 for Amica. Over the past year, Chubb's prices ranged from $238.85 to $302.05, with a yearly change of 26.46%. Amica's prices fluctuated between zł51.10 and zł79.00, with a yearly change of 54.60%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.