Hiscox vs Chubb Which Is More Favorable?

Hiscox and Chubb are two prominent insurance companies with differing profiles in the financial markets. Hiscox, a specialty insurer, focuses on niche markets such as fine art and cyber liability insurance. Chubb, on the other hand, is a global insurer with a diverse range of products including property, casualty, and specialty insurance. Investors may compare these two companies based on factors such as financial performance, market share, and growth prospects to make informed decisions about investing in their stocks.

Hiscox or Chubb?

When comparing Hiscox and Chubb, 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 Hiscox and Chubb.

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. Hiscox has a dividend yield of 2.65%, while Chubb has a dividend yield of 1.29%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hiscox reports a 5-year dividend growth of -0.13% year and a payout ratio of 15.57%. On the other hand, Chubb reports a 5-year dividend growth of 3.29% year and a payout ratio of 14.19%.

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 Hiscox P/E ratio at 10.83 and Chubb's P/E ratio at 11.09. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hiscox P/B ratio is 3.05 while Chubb's P/B ratio is 1.69.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Hiscox has seen a 5-year revenue growth of 0.04%, while Chubb's is 0.72%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hiscox's ROE at 28.46% and Chubb's ROE at 16.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $28.28 for Hiscox and $272.39 for Chubb. Over the past year, Hiscox's prices ranged from $25.09 to $35.25, with a yearly change of 40.49%. Chubb's prices fluctuated between $216.91 and $302.05, with a yearly change of 39.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.