CNA Financial vs Travelers Companies Which Is More Lucrative?

CNA Financial and Travelers Companies are two well-established insurance companies that have been competing in the financial market for decades. Both companies offer a range of insurance products and services to consumers and businesses. While CNA Financial is known for its strong focus on commercial insurance, Travelers Companies has a wider reach with offerings in personal and business insurance. Investors looking to add insurance stocks to their portfolio may want to consider the performance and growth potential of both CNA Financial and Travelers Companies.

CNA Financial or Travelers Companies?

When comparing CNA Financial and Travelers Companies, 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 CNA Financial and Travelers Companies.

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. CNA Financial has a dividend yield of 7.78%, while Travelers Companies has a dividend yield of 1.7%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CNA Financial reports a 5-year dividend growth of -0.81% year and a payout ratio of 78.16%. On the other hand, Travelers Companies reports a 5-year dividend growth of 5.34% year and a payout ratio of 20.76%.

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 CNA Financial P/E ratio at 10.04 and Travelers Companies's P/E ratio at 12.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CNA Financial P/B ratio is 1.22 while Travelers Companies's P/B ratio is 2.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CNA Financial has seen a 5-year revenue growth of 0.24%, while Travelers Companies's is 0.59%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CNA Financial's ROE at 12.99% and Travelers Companies's ROE at 17.73%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $48.30 for CNA Financial and $243.29 for Travelers Companies. Over the past year, CNA Financial's prices ranged from $40.92 to $52.36, with a yearly change of 27.96%. Travelers Companies's prices fluctuated between $181.03 and $269.56, with a yearly change of 48.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.