Head to Head Comparison: QBE Insurance Group (OTCMKTS:QBIEY) versus Chubb (NYSE:CB)

Chubb (NYSE:CB) and QBE Insurance Group (OTCMKTS:QBIEY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares Chubb and QBE Insurance Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chubb	18.11%	16.45%	4.34%
QBE Insurance Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Chubb and QBE Insurance Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chubb	0	9	8	1	2.56
QBE Insurance Group	0	0	0	0	N/A

Chubb currently has a consensus target price of $266.37, indicating a potential upside of 8.97%. Given Chubb’s higher possible upside, analysts plainly believe Chubb is more favorable than QBE Insurance Group.

Earnings and Valuation

This table compares Chubb and QBE Insurance Group’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chubb	$49.74 billion	2.00	$9.03 billion	$21.83	11.20
QBE Insurance Group	N/A	N/A	N/A	($0.31)	-36.41

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

Dividends

Chubb pays an annual dividend of $3.44 per share and has a dividend yield of 1.4%. QBE Insurance Group pays an annual dividend of $0.30 per share and has a dividend yield of 2.6%. Chubb pays out 15.8% of its earnings in the form of a dividend. QBE Insurance Group pays out -95.9% 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. Chubb has increased its dividend for 30 consecutive years. QBE Insurance Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

83.8% of Chubb shares are held by institutional investors. Comparatively, 0.0% of QBE Insurance Group shares are held by institutional investors. 0.9% of Chubb shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Chubb beats QBE Insurance Group on 12 of the 14 factors compared between the two stocks.

About Chubb

Chubb Limited provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, casualty, workers' compensation, package policies, risk management, financial lines, marine, construction, environmental, medical risk, cyber risk, surety, and casualty; and group accident and health insurance to large, middle market, and small commercial businesses. Its North America Personal P&C Insurance segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, and recreational marine insurance and services. The company's North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm, ranch, and specialty property and casualty, and commercial agriculture products. Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction; and group accident and health, and traditional and specialty personal lines for corporations, middle markets, and small customers through retail brokers, agents, and other channels. The company's Global Reinsurance segment offers traditional and specialty reinsurance under the Chubb Tempest Re brand to property and casualty companies. Its Life Insurance segment provides protection and savings products comprising whole life, endowment plans, individual and life, group term life, health protection, personal accident, credit life, universal life, group employee benefits, and unit linked contracts. It markets its products primarily through insurance and reinsurance brokers. The company was formerly known as ACE Limited and changed its name to Chubb Limited in January 2016. Chubb Limited was incorporated in 1985 and is headquartered in Zurich, Switzerland.

About QBE Insurance Group

QBE Insurance Group Limited engages in underwriting general insurance and reinsurance risks in the Australia Pacific, North America, and internationally. It offers range of commercial, personal, and specialty products, such as commercial and domestic property, agriculture, public/product liability, motor and motor casualty, professional indemnity, workers' compensation, accident, health, financial and credit, and other insurance products, as well as marine, energy and aviation insurance products, and risk management solutions. The company also manages Lloyd's syndicates, as well as provides investment management services. QBE Insurance Group Limited was founded in 1886 and is headquartered in Sydney, Australia.