Protective Insurance (NASDAQ:PTVCB) and Loews (NYSE:L) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.
Risk & Volatility
Protective Insurance has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Loews has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.
Protective Insurance pays an annual dividend of $0.40 per share and has a dividend yield of 2.7%. Loews pays an annual dividend of $0.25 per share and has a dividend yield of 0.7%. Protective Insurance has increased its dividend for 1 consecutive years and Loews has increased its dividend for 1 consecutive years.
Earnings and Valuation
This table compares Protective Insurance and Loews’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Protective Insurance||$495.60 million||0.42||$7.35 million||N/A||N/A|
|Loews||$14.93 billion||0.69||$932.00 million||N/A||N/A|
Loews has higher revenue and earnings than Protective Insurance.
This is a summary of current ratings and price targets for Protective Insurance and Loews, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Loews has a consensus target price of $75.00, suggesting a potential upside of 103.42%. Given Loews’ higher probable upside, analysts clearly believe Loews is more favorable than Protective Insurance.
Insider and Institutional Ownership
46.6% of Protective Insurance shares are held by institutional investors. Comparatively, 59.1% of Loews shares are held by institutional investors. 27.3% of Protective Insurance shares are held by insiders. Comparatively, 15.2% of Loews shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Protective Insurance and Loews’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Loews beats Protective Insurance on 9 of the 12 factors compared between the two stocks.
About Protective Insurance
Protective Insurance Corporation, through its subsidiaries, engages in marketing and underwriting property and casualty insurance products. The company offers a range of fleet transportation insurance products, including commercial motor vehicle liability, physical damage, and general liability insurance; workers compensation insurance; medical and indemnity insurance products; non-trucking motor vehicle liability insurance; fidelity and surety bonds; and inland marine products consisting of cargo insurance. It also provides various additional services, such as risk surveys and analyses, safety program design and monitoring, government compliance assistance, loss control, and cost studies; research, development, and consultation in connection with new insurance programs that comprise development of systems to assist customers in monitoring their accident data; and claims handling services to clients with self-insurance programs. It serves trucking and public transportation fleets, as well as independent contractors in the trucking industry. The company primarily operates in the United States, Canada, Bermuda, and Puerto Rico. Protective Insurance Corporation was founded in 1930 and is headquartered in Carmel, Indiana.
Loews Corporation, through its subsidiaries, provides commercial property and casualty insurance in the United States and internationally. It operates through CNA Financial Corporation; Diamond Offshore Drilling, Inc.; Boardwalk Pipeline Partners, LP; and Loews Hotels Holding Corporation segments. The company offers specialty insurance products, such as management and professional liability insurance coverages and products; surety and fidelity bonds; and warranty and alternative risk services. It also provides commercial property insurance products include standard and excess property, marine, and boiler and machinery coverages; casualty insurance products comprise workers’ compensation, general and product liability, commercial auto, and umbrella coverages; and loss-sensitive insurance programs; and warranty, risk management, information, and claims administration services. The company markets its insurance products and services primarily through independent agents, brokers, and managing general underwriters. In addition, the company offers contract drilling services through a fleet of 17 offshore drilling rigs consisting of 4 drillships and 13 semisubmersible rigs. Further, it is involved in the transportation and storage of natural gas and natural gas liquids (NGLs). It owns and operates natural gas pipelines covering approximately 13,805 miles of interconnected pipelines; approximately 455 miles of NGL pipelines in Louisiana and Texas; and 14 underground storage fields with aggregate working gas capacity of approximately 205 billion cubic feet of natural gas. Additionally, it operates a chain of 24 hotels in the United States and Canada. The company was incorporated in 1969 and is headquartered in New York, New York.
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