Critical Survey: Allstate (ALL) vs. Progressive (PGR)

0
294

Allstate (NYSE: ALL) and Progressive (NYSE:PGR) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.Allstate pays an annual dividend of $1.84 per share and has a dividend yield of 2.0%. Progressive pays an annual dividend of $1.12 per share and has a dividend yield of 1.9%. Allstate pays out 27.4% of its earnings in the form of a dividend. Progressive pays out 42.6% 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. Allstate has increased its dividend for 7 consecutive years. Allstate is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.77.0% of Allstate shares are owned by institutional investors. Comparatively, 79.8% of Progressive shares are owned by institutional investors. 1.4% of Allstate shares are owned by company insiders. Comparatively, 0.7% of Progressive shares are owned by company 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.

Risk & Volatility

Allstate has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Progressive has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Allstate and Progressive, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allstate 0 9 4 0 2.31
Progressive 2 7 3 0 2.08

Allstate presently has a consensus price target of $101.23, indicating a potential upside of 8.36%. Progressive has a consensus price target of $58.42, indicating a potential downside of 1.84%. Given Allstate’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Allstate is more favorable than Progressive.

Profitability

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

Net Margins Return on Equity Return on Assets
Allstate 8.93% 14.56% 2.65%
Progressive 7.57% 21.57% 5.24%

Valuation and Earnings

This table compares Allstate and Progressive’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allstate $38.52 billion 0.85 $3.19 billion $6.71 13.92
Progressive $26.84 billion 1.29 $1.59 billion $2.63 22.63

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

Summary

Allstate beats Progressive on 12 of the 17 factors compared between the two stocks.

Allstate Company Profile

The Allstate Corporation, together with its subsidiaries, engages in property and casualty insurance, and life insurance businesses in the United States and Canada. The company’s Allstate Protection segment sells private passenger auto and homeowners insurance; specialty auto products, including motorcycle, trailer, motor home, and off-road vehicle insurance policies; other personal lines products, including renter, condominium, landlord, boat, umbrella, and manufactured home insurance policies; and commercial lines products under the Allstate, Esurance, and Encompass brand names. Its Service Businesses segment provides consumer electronics and appliance protection plans covering products, including TVs, smartphones, and computers; device and mobile data collection services, analytics and customer risk assessment solutions, and telematics services; roadside assistance services, such as towing, jump-start, lockout, fuel delivery, and tire change services; and vehicle service contracts, guaranteed asset protection waivers, road hazard tire and wheel protection, and paintless dent repair protection services under the SquareTrade, Arity, Allstate Roadside Services, and Allstate Dealer Services brands. The company’s Allstate Life Segment offers term, whole, interest-sensitive, and variable life insurance products, as well as non-proprietary retirement product solutions offered by third-party providers. Its Allstate Benefits segment provides life, accident, critical illness, short-term disability, and other health insurance products. The Allstate Corporation sells its products through agencies, as well as directly through contact centers and Internet; and financial specialists, brokers, relationships with wholesale partners, and affinity groups. The company was founded in 1931 and is based in Northbrook, Illinois.

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.

ReadMore…

LEAVE A REPLY

Please enter your comment!
Please enter your name here