Fidelis Insurance (NYSE:FIHL) vs. Travelers Companies (NYSE:TRV) Critical Comparison

Fidelis Insurance (NYSE:FIHL) and Travelers Companies (NYSE:TRV) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Profitability

This table compares Fidelis Insurance and Travelers Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelis Insurance	20.17%	15.27%	3.36%
Travelers Companies	10.02%	17.69%	3.50%

Insider and Institutional Ownership

82.0% of Fidelis Insurance shares are held by institutional investors. Comparatively, 82.4% of Travelers Companies shares are held by institutional investors. 1.3% of Travelers Companies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Fidelis Insurance and Travelers Companies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelis Insurance	$2.29 billion	0.94	$2.13 billion	$3.96	4.59
Travelers Companies	$45.35 billion	1.22	$2.99 billion	$19.50	12.50

Travelers Companies has higher revenue and earnings than Fidelis Insurance. Fidelis Insurance is trading at a lower price-to-earnings ratio than Travelers Companies, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Fidelis Insurance and Travelers Companies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelis Insurance	0	3	3	0	2.50
Travelers Companies	5	12	5	2	2.17

Fidelis Insurance presently has a consensus price target of $21.50, indicating a potential upside of 18.36%. Travelers Companies has a consensus price target of $251.70, indicating a potential upside of 3.27%. Given Fidelis Insurance’s stronger consensus rating and higher probable upside, research analysts clearly believe Fidelis Insurance is more favorable than Travelers Companies.

Dividends

Fidelis Insurance pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. Travelers Companies pays an annual dividend of $4.20 per share and has a dividend yield of 1.7%. Fidelis Insurance pays out 10.1% of its earnings in the form of a dividend. Travelers Companies pays out 21.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Travelers Companies has raised its dividend for 20 consecutive years. Fidelis Insurance is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Fidelis Insurance has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Travelers Companies has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Summary

Travelers Companies beats Fidelis Insurance on 13 of the 18 factors compared between the two stocks.

About Fidelis Insurance

Fidelis Insurance Holdings Limited, a specialty insurer, provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, as well as other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.

About Travelers Companies

The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United States and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance. The Business Insurance segment offers workers’ compensation, commercial automobile and property, general liability, commercial multi-peril, employers’ liability, public and product liability, professional indemnity, marine, aviation, onshore and offshore energy, construction, terrorism, personal accident, and kidnap and ransom insurance products. This segment operates through select accounts, which serve small businesses; commercial accounts that serve mid-sized businesses; national accounts, which serve large companies; and national property and other that serve large and mid-sized customers, commercial trucking industry, and agricultural businesses, as well as markets and distributes its products through brokers, wholesale agents, and program managers. The Bond & Specialty Insurance segment provides surety, fidelity, management and professional liability, and other property and casualty coverages and related risk management services through independent agencies and brokers. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners’ insurance to individuals through independent agencies and brokers. The Travelers Companies, Inc. was founded in 1853 and is based in New York, New York.