Analyzing Sampo (OTCMKTS:SAXPY) & Travelers Companies (NYSE:TRV)

Travelers Companies (NYSE:TRV) and Sampo (OTCMKTS:SAXPY) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.

Dividends

Travelers Companies pays an annual dividend of $5.00 per share and has a dividend yield of 1.3%. Sampo pays an annual dividend of $0.35 per share and has a dividend yield of 1.6%. Travelers Companies pays out 13.1% of its earnings in the form of a dividend. Sampo pays out 33.3% 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. Travelers Companies has increased its dividend for 21 consecutive years.

Risk and Volatility

Travelers Companies has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, Sampo has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.

Valuation and Earnings

This table compares Travelers Companies and Sampo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Travelers Companies	$48.83 billion	1.68	$6.29 billion	$38.14	10.49
Sampo	$13.08 billion	9.00	$2.26 billion	$1.05	21.10

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

Institutional and Insider Ownership

82.5% of Travelers Companies shares are owned by institutional investors. Comparatively, 0.0% of Sampo shares are owned by institutional investors. 1.4% of Travelers Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Travelers Companies and Sampo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Travelers Companies	17.03%	26.19%	5.82%
Sampo	N/A	18.60%	5.58%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Travelers Companies and Sampo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travelers Companies	4	15	5	2	2.19
Sampo	0	2	2	1	2.80

Travelers Companies currently has a consensus price target of $370.83, suggesting a potential downside of 7.29%. Given Travelers Companies’ higher probable upside, equities analysts plainly believe Travelers Companies is more favorable than Sampo.

Summary

Travelers Companies beats Sampo on 14 of the 18 factors compared between the two stocks.

About Travelers Companies

The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United States and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance. The Business Insurance segment offers workers’ compensation, commercial automobile and property, general liability, commercial multi-peril, employers’ liability, public and product liability, professional indemnity, marine, aviation, onshore and offshore energy, construction, terrorism, personal accident, and kidnap and ransom insurance products. This segment operates through select accounts, which serve small businesses; commercial accounts that serve mid-sized businesses; national accounts, which serve large companies; and national property and other that serve large and mid-sized customers, commercial trucking industry, and agricultural businesses, as well as markets and distributes its products through brokers, wholesale agents, and program managers. The Bond & Specialty Insurance segment provides surety, fidelity, management and professional liability, and other property and casualty coverages and related risk management services through independent agencies and brokers. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners’ insurance to individuals through independent agencies and brokers. The Travelers Companies, Inc. was founded in 1853 and is based in New York, New York.

About Sampo

Sampo Oyj, together with its subsidiaries, engages in the provision of non-life insurance products and services in Finland, Sweden, Norway, Denmark, Estonia, Lithuania, Latvia, and the United Kingdom. The company operates through If, Topdanmark, Hastings, Mandatum, and Holding segments. It offers property, casualty, liability, accident, sickness, household, homeowner, motor, travel, marine, aviation, transport, forest, livestock, health, workers compensation, car, van, and bike insurance services, as well as reinsurance services. The company was founded in 1909 and is based in Helsinki, Finland.