Chubb (CB) and Global Indemnity (GBLI) Financial Analysis

Chubb (NYSE: CB) and Global Indemnity (NASDAQ:GBLI) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Valuation and Earnings

How to Become a New Pot Stock Millionaire

This table compares Chubb and Global Indemnity’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chubb $32.46 billion 1.92 $3.86 billion $8.03 16.70
Global Indemnity $485.52 million 1.15 -$9.55 million N/A N/A

Chubb has higher revenue and earnings than Global Indemnity.

Analyst Ratings

This is a summary of recent ratings and price targets for Chubb and Global Indemnity, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chubb 0 4 9 0 2.69
Global Indemnity 0 0 0 0 N/A

Chubb currently has a consensus target price of $162.27, suggesting a potential upside of 20.98%. Given Chubb’s higher possible upside, equities analysts clearly believe Chubb is more favorable than Global Indemnity.

Dividends

Chubb pays an annual dividend of $2.84 per share and has a dividend yield of 2.1%. Global Indemnity pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. Chubb pays out 35.4% of its earnings in the form of a dividend. Chubb has increased its dividend for 52 consecutive years.

Volatility & Risk

Chubb has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Global Indemnity has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Profitability

This table compares Chubb and Global Indemnity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chubb 11.87% 7.52% 2.30%
Global Indemnity -1.97% 0.90% 0.35%

Institutional & Insider Ownership

89.2% of Chubb shares are owned by institutional investors. Comparatively, 56.4% of Global Indemnity shares are owned by institutional investors. 0.4% of Chubb shares are owned by company insiders. Comparatively, 53.3% of Global Indemnity shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Chubb beats Global Indemnity on 10 of the 15 factors compared between the two stocks.

Chubb Company Profile

Chubb Limited is a holding company. The Company, through its subsidiaries, provides a range of insurance and reinsurance products and services to clients around the world. Its segments include North America Commercial property and casualty (P&C) Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance and Life Insurance. It offers commercial insurance products and service offerings, such as risk management programs, loss control, and engineering and complex claims management. It provides specialized insurance products to areas, such as aviation and energy. It also offers personal lines insurance coverage, including homeowners, automobile, valuables, umbrella liability and recreational marine products. In addition, it supplies personal accident, supplemental health and life insurance to individuals in select countries.

Global Indemnity Company Profile

Global Indemnity Limited, through its subsidiaries, provides insurance and reinsurance products and services in the United States and internationally. The company operates through three segments: Commercial Lines, Personal Lines, and Reinsurance Operations. The Commercial Lines segment distributes property, general liability, casualty, and professional lines products, as well as products for vacant, and under construction and renovation dwellings. This segment primarily serves small commercial businesses through a network of wholesale general agents, program administrators, brokers, aggregators, and retail agents. The Personal Lines segment offers specialty personal lines and agricultural coverage, including agriculture, mobile homes, manufactured homes, homeowners, collectibles, and watersports primarily through retail agents, wholesale general agents, and brokers. The Reinsurance Operations segment provides third party treaty reinsurance solutions to specialty property and casualty insurance, and reinsurance companies; and professional liability products to companies through brokers, as well as on a direct basis. The company was incorporated in 2016 and is based in George Town, the Cayman Islands.

Receive News & Ratings for Chubb Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Chubb and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply