Axis Capital (NYSE:AXS) & Protective Insurance (NYSE:PTVCA) Head-To-Head Review

Axis Capital (NYSE:AXS) and Protective Insurance (NASDAQ:PTVCA) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Dividends

Axis Capital pays an annual dividend of $1.60 per share and has a dividend yield of 2.5%. Protective Insurance pays an annual dividend of $0.40 per share and has a dividend yield of 2.4%. Axis Capital pays out 83.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Axis Capital has increased its dividend for 12 consecutive years. Axis Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

89.5% of Axis Capital shares are owned by institutional investors. Comparatively, 3.8% of Protective Insurance shares are owned by institutional investors. 2.0% of Axis Capital shares are owned by company insiders. Comparatively, 28.2% of Protective Insurance shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Axis Capital and Protective Insurance’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Axis Capital $5.09 billion 1.05 $43.02 million $1.92 33.16
Protective Insurance $439.17 million 0.55 -$34.08 million N/A N/A

Axis Capital has higher revenue and earnings than Protective Insurance.

Volatility and Risk

Axis Capital has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Protective Insurance has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Axis Capital 1.54% 3.95% 0.70%
Protective Insurance -6.98% -5.19% -1.34%

Analyst Ratings

This is a breakdown of current ratings and target prices for Axis Capital and Protective Insurance, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axis Capital 0 3 3 0 2.50
Protective Insurance 0 0 0 0 N/A

Axis Capital presently has a consensus price target of $64.33, suggesting a potential upside of 1.04%. Given Axis Capital’s higher possible upside, research analysts clearly believe Axis Capital is more favorable than Protective Insurance.

Summary

Axis Capital beats Protective Insurance on 11 of the 14 factors compared between the two stocks.

Axis Capital Company Profile

AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products worldwide. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers property insurance products for commercial buildings, residential premises, construction projects, and onshore energy installations; marine insurance products covering offshore energy, cargo, liability, recreational marine, fine art, specie, hull, and war; and terrorism, aviation, credit and political risk, and liability insurance products. It also provides professional insurance products that cover directors' and officers' liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, cyber and privacy, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers. In addition, this segment offers accidental death, travel, and specialty health products for employer and affinity groups, as well as accident and health reinsurance products through wholesale and retail brokers, managing general agents, and underwriters. The Reinsurance segment offers reinsurance products to insurance companies, including catastrophe reinsurance products; property reinsurance products covering property damage and related losses resulting from natural and man-made perils; professional lines; and credit and surety products. This segment also provides agriculture reinsurance products; coverages for various types of construction risks and risks related to erection, testing, and commissioning of machinery and plants during the construction stage; and marine, aviation, and personal accident reinsurance products. The company was founded in 2001 and is headquartered in Pembroke, Bermuda.

Protective Insurance Company Profile

Protective Insurance Corporation, through its subsidiaries, engages in marketing and underwriting property and casualty insurance products. The company offers a range of fleet transportation insurance products, including commercial motor vehicle liability, physical damage, and general liability insurance; workers compensation insurance; medical and indemnity insurance products; non-trucking motor vehicle liability insurance; fidelity and surety bonds; and inland marine products consisting of cargo insurance. It also provides various additional services, such as risk surveys and analyses, safety program design and monitoring, government compliance assistance, loss control, and cost studies; research, development, and consultation in connection with new insurance programs that comprise development of systems to assist customers in monitoring their accident data; and claims handling services to clients with self-insurance programs. It serves trucking and public transportation fleets, as well as independent contractors in the trucking industry. The company primarily operates in the United States, Canada, Bermuda, and Puerto Rico. Protective Insurance Corporation was founded in 1930 and is headquartered in Carmel, Indiana.

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