Reviewing Greenlight Capital Re (GLRE) and Chubb (CB)
Greenlight Capital Re (NYSE: CB) and Chubb (NYSE:CB) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.
Earnings and Valuation
This table compares Greenlight Capital Re and Chubb’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Greenlight Capital Re||$645.67 million||0.70||-$44.95 million||($1.21)||-10.00|
|Chubb||$32.46 billion||1.95||$3.86 billion||$8.03||17.01|
Volatility and Risk
Greenlight Capital Re has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Chubb has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.
Institutional and Insider Ownership
43.3% of Greenlight Capital Re shares are owned by institutional investors. Comparatively, 85.8% of Chubb shares are owned by institutional investors. 21.4% of Greenlight Capital Re shares are owned by company insiders. Comparatively, 0.4% of Chubb shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Greenlight Capital Re and Chubb’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Greenlight Capital Re||-44.10%||-25.61%||-6.50%|
This is a breakdown of recent ratings and recommmendations for Greenlight Capital Re and Chubb, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Greenlight Capital Re||0||0||1||0||3.00|
Greenlight Capital Re currently has a consensus price target of $25.00, suggesting a potential upside of 106.61%. Chubb has a consensus price target of $159.70, suggesting a potential upside of 16.90%. Given Greenlight Capital Re’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Greenlight Capital Re is more favorable than Chubb.
Chubb pays an annual dividend of $2.92 per share and has a dividend yield of 2.1%. Greenlight Capital Re does not pay a dividend. Chubb pays out 36.4% of its earnings in the form of a dividend. Chubb has raised its dividend for 52 consecutive years.
Chubb beats Greenlight Capital Re on 13 of the 17 factors compared between the two stocks.
About Greenlight Capital Re
Greenlight Capital Re, Ltd., through its subsidiaries, engages in the provision of property and casualty reinsurance products and services worldwide. Its frequency business comprises contracts containing small losses emanating from multiple events and enables the clients to increase their underwriting capacity; and severity business includes contracts with the potential for significant losses emanating from one event or various events. The company offers various property reinsurance products and services that include commercial, motor, and personal; casualty reinsurance products and services, which include general liability, motor, professional, and worker's compensation; and specialty reinsurance products and services that include accident and health, financial, marine, and other products. It markets its products through reinsurance brokers. The company was founded in 2004 and is headquartered in Grand Cayman, the Cayman Islands.
Chubb Limited, through its subsidiaries, provides insurance and reinsurance products worldwide. Its North America Commercial P&C Insurance segment offers commercial property, marine, general casualty, workers' compensation, package policies, and risk management; and professional lines, marine, construction, environmental, medical, cyber risk, and excess casualty, as well as group accident and health insurance to large, middle market, and small commercial businesses in the United States, Canada, and Bermuda. Its North America Personal P&C Insurance segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, and recreational marine insurance and services in the United States and Canada. Its North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm and ranch property, as well as commercial agriculture products. Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; and specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction risk, as well as group accident and health, and traditional and specialty personal lines for large corporations, middle markets, and small customers through retail brokers, agents, and other channels. Its Global Reinsurance segment offers traditional and specialty reinsurance under the Chubb Tempest Re brand name to property and casualty companies. Its Life Insurance segment provides protection and savings products comprising whole life, endowment plans, individual term life, group term life, medical and health, personal accident, credit life, universal life, and unit linked contracts. The company was formerly known as ACE Limited and changed its name to Chubb Limited in January 2016. Chubb Limited was founded in 1985 and is headquartered in Zurich, Switzerland.
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