Trupanion (NASDAQ:TRUP – Get Free Report) and W.R. Berkley (NYSE:WRB – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares Trupanion and W.R. Berkley’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trupanion | 1.53% | 5.96% | 2.55% |
| W.R. Berkley | 12.94% | 19.44% | 4.28% |
Insider & Institutional Ownership
68.8% of W.R. Berkley shares are owned by institutional investors. 5.6% of Trupanion shares are owned by company insiders. Comparatively, 25.1% of W.R. Berkley shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trupanion | $1.44 billion | 0.75 | $19.43 million | $0.53 | 46.34 |
| W.R. Berkley | $14.71 billion | 1.76 | $1.78 billion | $4.87 | 14.34 |
W.R. Berkley has higher revenue and earnings than Trupanion. W.R. Berkley is trading at a lower price-to-earnings ratio than Trupanion, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Trupanion has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, W.R. Berkley has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets for Trupanion and W.R. Berkley, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trupanion | 0 | 5 | 1 | 0 | 2.17 |
| W.R. Berkley | 6 | 9 | 3 | 0 | 1.83 |
Trupanion presently has a consensus target price of $39.20, suggesting a potential upside of 59.61%. W.R. Berkley has a consensus target price of $70.83, suggesting a potential upside of 1.40%. Given Trupanion’s stronger consensus rating and higher possible upside, research analysts clearly believe Trupanion is more favorable than W.R. Berkley.
Summary
W.R. Berkley beats Trupanion on 10 of the 14 factors compared between the two stocks.
About Trupanion
Trupanion, Inc., together with its subsidiaries, provides medical insurance for cats and dogs on a monthly subscription basis in the United States, Canada, Continental Europe, and Australia. The company operates in two segments, Subscription Business and Other Business. It serves pet owners and veterinarians. The company was formerly known as Vetinsurance International, Inc. changed its name to Trupanion, Inc. in 2013. Trupanion, Inc. was founded in 2000 and is headquartered in Seattle, Washington.
About W.R. Berkley
W. R. Berkley Corporation, an insurance holding company, operates as a commercial lines writers worldwide. It operates in two segments, Insurance and Reinsurance & Monoline Excess. The Insurance segment underwrites commercial insurance business, including excess and surplus lines, admitted lines, and specialty personal lines. This segment also provides accident and health insurance and reinsurance products; insurance for commercial risks; casualty and specialty environmental products; specialized insurance coverages for fine arts and jewelry exposures; excess liability and inland marine coverage for small to medium-sized insureds; and commercial general liability, umbrella, professional liability, directors and officers, commercial property, and surety products, as well as products for technology, and life sciences and travel industries. In addition, this segment offers cyber risk solutions; crime and fidelity insurance products; medical professional coverages; workers' compensation insurance products; general insurance; personal lines insurance solutions, including home, condo/co-op, auto, and collectibles; automobile, law enforcement, public officials and educator's legal, and employment practices liability, as well as incidental medical and property and crime insurance products; at-risk and alternative risk insurance program management services; professional liability; energy and marine risks; and provides insurance products to the Lloyd's marketplace. The Reinsurance & Monoline Excess segment provides treaty and facultative reinsurance solutions; property and casualty reinsurance; facultative reinsurance products include automatic, semi-automatic and individual risk assumed reinsurance; and turnkey products such as cyber, employment practices liability insurance, liquor liability insurance and violent events. The company was founded in 1967 and is headquartered in Greenwich, Connecticut.
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