Chubb vs Matson Which Is a Smarter Choice?

Chubb Limited and Matson, Inc. are two prominent companies in the financial sector, each with a unique set of strengths and weaknesses. Chubb Limited is a global insurance company known for its stability and strong financial performance, while Matson, Inc. is a leading provider of ocean transportation services with a focus on sustainability and customer service. Investors may be drawn to Chubb for its track record of consistent returns, or to Matson for its potential growth opportunities in the shipping industry. Understanding the differences between these two stocks can help investors make informed decisions about their portfolios.

Chubb or Matson?

When comparing Chubb and Matson, 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 Matson.

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 Matson has a dividend yield of 0.9%. 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, Matson reports a 5-year dividend growth of 8.97% year and a payout ratio of 10.88%.

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 Matson's P/E ratio at 11.85. 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 Matson's P/B ratio is 1.90.

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 Matson's is 0.68%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chubb's ROE at 16.20% and Matson's ROE at 16.89%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $275.00 for Chubb and $144.91 for Matson. Over the past year, Chubb's prices ranged from $216.91 to $302.05, with a yearly change of 39.25%. Matson's prices fluctuated between $100.10 and $169.12, with a yearly change of 68.95%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.