Chubb vs Hiscox Which Is More Profitable?

Chubb Limited and Hiscox Ltd. are two insurance companies operating in the global market. Chubb is a renowned provider of property and casualty insurance, as well as reinsurance products. It has a long history of financial stability and strong track record of profitability. On the other hand, Hiscox is a specialist insurer focusing on niche markets such as fine art, classic cars, and high-net-worth individuals. Both companies offer investors exposure to the insurance sector, but their business models and target markets differ significantly.

Chubb or Hiscox?

When comparing Chubb and Hiscox, 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 Hiscox.

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 1.3%, while Hiscox has a dividend yield of 2.6%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Chubb reports a 5-year dividend growth of 3.29% year and a payout ratio of 14.19%. On the other hand, Hiscox reports a 5-year dividend growth of -0.13% year and a payout ratio of 15.57%.

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 11.15 and Hiscox's P/E ratio at 11.02. 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 1.70 while Hiscox's P/B ratio is 3.10.

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 0.72%, while Hiscox's is 0.04%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chubb's ROE at 16.20% and Hiscox's ROE at 28.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $275.00 for Chubb and $29.50 for Hiscox. Over the past year, Chubb's prices ranged from $216.91 to $302.05, with a yearly change of 39.25%. Hiscox's prices fluctuated between $25.09 and $35.25, with a yearly change of 40.49%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.