Compass vs Progressive Which Is More Attractive?

Compass and Progressive are two well-known companies in the insurance industry, each with its own set of strengths and weaknesses. Compass, a traditional insurance provider, offers stability and reliability in its stock performance. Progressive, on the other hand, is known for its innovation and forward-thinking approach in the industry. While Compass may appeal to more conservative investors looking for steady growth, Progressive may be more attractive to those seeking higher risk but potentially higher returns. Ultimately, the choice between Compass and Progressive stocks will depend on the individual investor's risk tolerance and investment goals.

Compass or Progressive?

When comparing Compass and Progressive, 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 Compass and Progressive.

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. Compass has a dividend yield of -%, while Progressive has a dividend yield of 0.44%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Compass reports a 5-year dividend growth of 0.00% year and a payout ratio of -14.93%. On the other hand, Progressive reports a 5-year dividend growth of -18.68% year and a payout ratio of 8.53%.

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 Compass P/E ratio at -17.41 and Progressive's P/E ratio at 18.77. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Compass P/B ratio is 8.04 while Progressive's P/B ratio is 35.97.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Compass has seen a 5-year revenue growth of 3.20%, while Progressive's is 0.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Compass's ROE at -49.85% and Progressive's ROE at 46.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.59 for Compass and $259.41 for Progressive. Over the past year, Compass's prices ranged from $1.88 to $7.01, with a yearly change of 272.87%. Progressive's prices fluctuated between $149.14 and $263.85, with a yearly change of 76.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.