Contrasting Travelers Companies (TRV) & Greenlight Capital Re (GLRE)

Travelers Companies (NYSE:TRV) and Greenlight Capital Re (NASDAQ:GLRE) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Profitability

This table compares Travelers Companies and Greenlight Capital Re’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Travelers Companies 8.32% 10.69% 2.34%
Greenlight Capital Re -191.26% -58.37% -15.92%

Risk and Volatility

Travelers Companies has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Greenlight Capital Re has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Dividends

Travelers Companies pays an annual dividend of $3.08 per share and has a dividend yield of 2.3%. Greenlight Capital Re does not pay a dividend. Travelers Companies pays out 34.5% of its earnings in the form of a dividend. Travelers Companies has raised its dividend for 10 consecutive years.

Insider and Institutional Ownership

80.3% of Travelers Companies shares are held by institutional investors. Comparatively, 50.4% of Greenlight Capital Re shares are held by institutional investors. 0.8% of Travelers Companies shares are held by company insiders. Comparatively, 21.4% of Greenlight Capital Re shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Travelers Companies and Greenlight Capital Re’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Travelers Companies $30.28 billion 1.18 $2.52 billion $8.94 15.30
Greenlight Capital Re $183.03 million 2.17 -$350.05 million ($9.74) -1.12

Travelers Companies has higher revenue and earnings than Greenlight Capital Re. Greenlight Capital Re 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 Recommendations

This is a summary of recent ratings and price targets for Travelers Companies and Greenlight Capital Re, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Travelers Companies 1 8 3 0 2.17
Greenlight Capital Re 0 0 0 0 N/A

Travelers Companies presently has a consensus price target of $138.00, indicating a potential upside of 0.88%. Given Travelers Companies’ higher possible upside, analysts plainly believe Travelers Companies is more favorable than Greenlight Capital Re.

Summary

Travelers Companies beats Greenlight Capital Re on 12 of the 16 factors compared between the two stocks.

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 transportation industry, and agricultural businesses, as well as markets and distributes its products through brokers, wholesale agents, program managers, and specialized retail agents. The Bond & Specialty Insurance segment provides surety, fidelity, management and professional liability, and other property and casualty insurance products. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals. The company distributes its products primarily through independent agencies and brokers. The Travelers Companies, Inc. was founded in 1853 and is based in New York, New York.

About Greenlight Capital Re

Greenlight Capital Re, Ltd., through its subsidiaries, operates as a property and casualty reinsurer worldwide. The company offers various property reinsurance products and services, including automobile physical damage; personal lines, such as homeowners' insurance; and commercial lines. It also provides casualty reinsurance products and services comprising general liability, motor liability, professional liability, and worker's compensation; and accident and health, mortgage insurance, surety, trade credit, marine, aviation, energy, cyber, and terrorism products. The company markets its products through reinsurance brokers. Greenlight Capital Re, Ltd. was founded in 2004 and is headquartered in Grand Cayman, the Cayman Islands.

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