Direct Analysis: Progressive (NYSE:PGR) and Trean Insurance Group (NASDAQ:TIG)


Progressive ( NYSE:PGR – Get Rating ) and Trean Insurance Group ( NASDAQ:TIG – Get Rating ) are both finance companies, but which is the better business? We will compare the two companies based on their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Earnings and rating

This table compares Progressive and Trean Insurance Group’s revenue, earnings per share and valuation.

Gross income Price/sales ratio Net income Earnings per share Price/earnings ratio
Progressive $47.70 billion 1.48 $3.35 billion $3.68 32.70
Trean Insurance Group $217.69 million 1.35 $19.33 million $0.43 1:40 p.m

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

Profitability

This table compares the net margins, return on equity and return on assets of Progressive and Trean Insurance Group.

Net margins Return on capital Return on assets
Progressive 4.54% 12.85% 3.15%
Trean Insurance Group 9.32% 5.32% 1.53%

Risk and volatility

Progressive has a beta of 0.49, meaning its share price is 51% less volatile than the S&P 500. In comparison, Trean Insurance Group has a beta of 0.63, meaning its share price is 37% less volatile than the S&P 500.

Internal and institutional ownership

83.7% of Progressive shares are owned by institutional investors. Comparatively, 87.6% of Trean Insurance Group shares are owned by institutional investors. 0.3% of Progressive shares are owned by company insiders. Comparatively, 9.3% of Trean Insurance Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, big money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of the latest ratings and recommendations for Progressive and Trean Insurance Group, as reported by MarketBeat.

Estimates for sale Hold the ratings Buy ratings Strong buy ratings Rating score
Progressive 5 7 2 0 1.79
Trean Insurance Group 0 2 1 0 2.33

Progressive currently has a consensus target price of $107.23, indicating a potential downside of 10.88%. Trean Insurance Group has a consensus target price of $10.00, indicating a potential upside of 73.61%. Given Trean Insurance Group’s stronger consensus rating and higher possible upside, analysts plainly believe Trean Insurance Group is more favorable than Progressive.

Summary

Progressive beats Trean Insurance Group on 8 of the 14 factors compared between the two stocks.

About Progressive (Get Rating)

Progressive Corporation, an insurance holding company, provides personal and commercial auto, personal residential and commercial property, general liability and other specialty property casualty insurance products and related services in the United States. It operates in three segments: Personal Lines, Commercial Lines and Property. The Personal Lines segment underwrites personal automobiles and recreational vehicles (RVs). The products of this segment include personal motor insurance; and specialty lines products including motorcycle, ATV, RV, watercraft, snowmobile and related products. The Commercial Lines segment provides automobile-related basic liability and physical damage insurance, as well as business-related general liability and property insurance for cars, vans, pickup trucks and dump trucks used by small businesses; tractors, trailers and straight trucks used primarily by regional general cargo and freight forwarder-type companies and long-haul operators; dump trucks, log trucks and garbage trucks used by dirt, sand and gravel, logging and coal companies; and tow trucks and breakers used in the towing services and gas/gas station business; as well as non-fleet taxis and airport taxis and black car services. The Property segment issues residential property insurance for homeowners, other property owners and renters, and offers personal umbrella insurance and primary and supplemental flood insurance. The company also offers policy issuance and claims adjustment services; and acts as an agent for homeowners’ general liability, workers’ compensation insurance and other products. It also provides reinsurance services. The company sells its products through independent insurance agencies, as well as directly on the Internet through mobile devices and over the phone. Progressive Corporation was founded in 1937 and is headquartered in Mayfield, Ohio.

About Trean Insurance Group (Get Rating)

Trean Insurance Group, Inc. underwrites specialty accident insurance products in the United States. The company underwrites business, primarily workers’ compensation, accident and health products, and medical professional liability products. It also offers a variety of services including carrier issuance, claims administration and reinsurance brokerage services. The company offers its products through program partners and managing general agents. Trean Insurance Group, Inc. was founded in 1996 and is based in Wayzata, Minnesota.



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