Fidelis Insurance (NYSE:FIHL – Get Free Report) and Loews (NYSE:L – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
Dividends
Fidelis Insurance pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Loews pays an annual dividend of $0.25 per share and has a dividend yield of 0.3%. Fidelis Insurance pays out 2.1% of its earnings in the form of a dividend. Loews pays out 4.0% 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. Fidelis Insurance is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a summary of current recommendations and price targets for Fidelis Insurance and Loews, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fidelis Insurance | 0 | 4 | 4 | 0 | 2.50 |
| Loews | 0 | 0 | 1 | 0 | 3.00 |
Valuation and Earnings
This table compares Fidelis Insurance and Loews’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fidelis Insurance | $3.60 billion | 0.61 | $2.13 billion | $19.07 | 0.98 |
| Loews | $15.90 billion | 1.07 | $1.43 billion | $6.30 | 12.13 |
Fidelis Insurance has higher earnings, but lower revenue than Loews. Fidelis Insurance is trading at a lower price-to-earnings ratio than Loews, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Fidelis Insurance and Loews’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fidelis Insurance | 59.30% | 20.23% | 4.22% |
| Loews | 9.02% | 9.18% | 1.85% |
Insider and Institutional Ownership
82.0% of Fidelis Insurance shares are held by institutional investors. Comparatively, 58.3% of Loews shares are held by institutional investors. 18.7% of Loews shares are held 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.
Summary
Fidelis Insurance beats Loews on 9 of the 15 factors compared between the two stocks.
About Fidelis Insurance
Fidelis Insurance Holdings Limited, together with its subsidiaries, provides insurance and reinsurance products in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, and other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.
About Loews
Loews Corporation provides commercial property and casualty insurance in the United States and internationally. The company offers specialty insurance products, such as management and professional liability, and other coverage products; surety and fidelity bonds; property insurance products that include standard and excess property, marine and boiler, and machinery coverages; and casualty insurance products, such as workers' compensation, general and product liability, and commercial auto, surplus, and umbrella coverages. It also provides loss-sensitive insurance programs; and warranty, risk management, information, and claims administration services. The company markets its insurance products and services through independent agents, brokers, and managing general underwriters. In addition, the company is involved in the transportation and storage of natural gas and natural gas liquids, and hydrocarbons through natural gas pipelines covering approximately 13,455 miles of interconnected pipelines; 855 miles of NGL pipelines in Louisiana and Texas; 14 underground storage fields with an aggregate gas capacity of approximately 199.5 billion cubic feet of natural gas; and eleven salt dome caverns and related brine infrastructure for providing brine supply services. Further, the company operates a chain of 25 hotels; and develops, manufactures, and markets a range of extrusion blow-molded and injection molded plastic containers for customers in the pharmaceutical, dairy, household chemicals, food/nutraceuticals, industrial/specialty chemicals, and water and beverage/juice industries, as well as manufactures commodity and differentiated plastic resins from recycled plastic materials. Loews Corporation was incorporated in 1969 and is headquartered in New York, New York.
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