Contrasting Progressive (PGR) & Its Rivals

Progressive (NYSE: PGR) is one of 73 publicly-traded companies in the “Fire, marine, & casualty insurance” industry, but how does it compare to its competitors? We will compare Progressive to related businesses based on the strength of its dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Profitability

This table compares Progressive and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Progressive 6.75% 18.90% 4.54%
Progressive Competitors 2.76% -0.01% -0.40%

Volatility and Risk

Progressive has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Progressive’s competitors have a beta of 0.76, suggesting that their average share price is 24% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Progressive and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Progressive 2 7 4 1 2.29
Progressive Competitors 500 1975 1885 96 2.35

Progressive presently has a consensus target price of $53.21, suggesting a potential downside of 12.66%. As a group, “Fire, marine, & casualty insurance” companies have a potential upside of 13.27%. Given Progressive’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Progressive has less favorable growth aspects than its competitors.

Dividends

Progressive pays an annual dividend of $1.12 per share and has a dividend yield of 1.8%. Progressive pays out 42.6% of its earnings in the form of a dividend. As a group, “Fire, marine, & casualty insurance” companies pay a dividend yield of 1.5% and pay out 84.9% of their earnings in the form of a dividend. Progressive is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

81.0% of Progressive shares are owned by institutional investors. Comparatively, 61.1% of shares of all “Fire, marine, & casualty insurance” companies are owned by institutional investors. 0.7% of Progressive shares are owned by insiders. Comparatively, 13.6% of shares of all “Fire, marine, & casualty insurance” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Progressive and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Progressive $26.84 billion $1.59 billion 23.17
Progressive Competitors $12.77 billion $1.43 billion 21.50

Progressive has higher revenue and earnings than its competitors. Progressive is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Progressive beats its competitors on 10 of the 15 factors compared.

Progressive Company Profile

The Progressive Corporation, through its subsidiaries, provides personal and commercial auto insurance, residential property insurance, and other specialty property-casualty insurance and related services primarily in the United States. Its Personal Lines segment writes insurance for personal autos, and recreational and other vehicles. This segment's products include personal auto insurance; and special lines products, including insurance for motorcycles, ATVs, RVs, watercrafts, and snowmobiles. The company's Commercial Lines segment provides primary liability, physical damage, and other auto-related insurance for autos, vans, pick-up trucks, and dump trucks used by small businesses; tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses, and non-fleet long-haul operators; dump trucks, log trucks, and garbage trucks used by dirt, sand and gravel, logging, and coal-type businesses; tow trucks and wreckers used in towing services and gas/service station businesses; and non-fleet taxis, black-car services, and airport taxis. Its Property segment provides residential property insurance for homeowners, other property owners, and renters, as well as offers personal umbrella insurance, and primary and excess flood insurance. The company also offers policy issuance and claims adjusting services; home, condominium, renters, and other insurance; and general liability and business owner's policies, and workers' compensation insurance. In addition, it offers reinsurance services. The Progressive Corporation sells its products and services through independent insurance agencies, as well as directly on Internet, and mobile devices, and over the phone. The company was founded in 1937 and is headquartered in Mayfield Village, Ohio.

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




Leave a Reply