Reviewing Axis Capital (NYSE:AXS) & Progressive (NYSE:PGR)

Axis Capital (NYSE:AXS) and Progressive (NYSE:PGR) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Volatility & Risk

Axis Capital has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Progressive has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.

Insider and Institutional Ownership

93.4% of Axis Capital shares are owned by institutional investors. Comparatively, 85.3% of Progressive shares are owned by institutional investors. 0.6% of Axis Capital shares are owned by insiders. Comparatively, 0.3% of Progressive shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Axis Capital and Progressive, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axis Capital	0	3	8	1	2.83
Progressive	2	14	6	0	2.18

Axis Capital presently has a consensus price target of $122.80, indicating a potential upside of 20.35%. Progressive has a consensus price target of $238.39, indicating a potential upside of 17.61%. Given Axis Capital’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Axis Capital is more favorable than Progressive.

Dividends

Axis Capital pays an annual dividend of $1.76 per share and has a dividend yield of 1.7%. Progressive pays an annual dividend of $0.40 per share and has a dividend yield of 0.2%. Axis Capital pays out 14.2% of its earnings in the form of a dividend. Progressive pays out 2.0% 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.

Earnings and Valuation

This table compares Axis Capital and Progressive”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axis Capital	$6.43 billion	1.18	$1.01 billion	$12.39	8.24
Progressive	$87.67 billion	1.35	$11.31 billion	$19.67	10.30

Progressive has higher revenue and earnings than Axis Capital. Axis Capital is trading at a lower price-to-earnings ratio than Progressive, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Axis Capital and Progressive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axis Capital	15.37%	18.72%	3.11%
Progressive	12.92%	33.47%	9.05%

Summary

Axis Capital beats Progressive on 9 of the 17 factors compared between the two stocks.

About Axis Capital

AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products in Bermuda, the United States, and internationally. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers professional insurance products that cover directors' and officers' liability, errors and omissions, employment practices, fiduciary, crime, professional indemnity, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers; and property insurance products for commercial buildings, residential premises, construction projects, property in transit, onshore renewable energy installations, and physical damage and business interruption following an act of terrorism. This segment also provides marine and aviation insurance services for offshore energy, renewable offshore energy, cargo, liability, including kidnap and ransom, fine art, specie, and hull war, hull and liability, and specific war coverage for passenger airlines, cargo operations, general aviation operations, airports, aviation authorities, security firms, and product manufacturers; personal accident, travel insurance, specialty health products for employer and affinity groups, and pet insurance products; and liability, cyber, and credit and political risk insurance services. The Reinsurance segment offers agriculture, marine and aviation, catastrophe, accidental and health, credit and surety, motor, professional, travel, life, engineering, property, and liability reinsurance products. AXIS Capital Holdings Limited was founded in 2001 and is headquartered in Pembroke, Bermuda.

About Progressive

The Progressive Corporation, an insurance holding company, provides personal and commercial auto, personal residential and commercial property, business related general liability, and other specialty property-casualty insurance products and related services in the United States. It operates in three segments: Personal Lines, Commercial Lines, and Property. The Personal Lines segment writes insurance for personal autos and recreational vehicles (RV). This segment's products include personal auto insurance; and special lines products, including insurance for motorcycles, ATVs, RVs, watercrafts, snowmobiles, and related products. The Commercial Lines segment provides auto-related liability and physical damage insurance, and business-related general liability and property insurance for autos, vans, and pick-up trucks used by small businesses, as well as non-fleet taxis, black-car services, and airport taxis; tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses, and long-haul operators; dump trucks used by light contractors and heavy constructions; log trucks and garbage trucks used by dirt, sand and gravel, logging, garbage/debris removal, and coal-type businesses; and tow trucks and wreckers used in towing services and gas/service station businesses. The Property segment writes residential property insurance for homeowners, other property owners, and renters, as well as offers manufactured homes, personal umbrella insurance, and primary and excess flood insurance. The company offers policy issuance and claims adjusting services; acts as an agent to homeowners, general liability, workers' compensation insurance, and other products; and reinsurance services. It sells its products through independent insurance agencies, as well as through mobile applications and over the phone. The Progressive Corporation was founded in 1937 and is headquartered in Mayfield Village, Ohio.