Progressive Story

PGR -- USA Stock

USD 94.80 1.35 1.44%

Macroaxis Story

It looks like Prudential Financial will continue to recover faster as its price went down 0.35% today to Progressive's 0.11%. As many rational traders are trying to avoid financial services space, it makes sense to sum up Progressive a little further and understand how it stands against Prudential Financial and other similar entities. We are going to discuss some of the competitive aspects of both Progressive and Prudential.

Published over three months ago

View all stories for Progressive | View All Stories

Our viewpoint on Progressive (NYSE:PGR) and Prudential Financial (NYSE:PRU)?

By analyzing existing basic indicators between Progressive and Prudential, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Prudential with a short position in Progressive. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Progressive has an asset utilization ratio of 135.95 percent. This connotes that the company is making $1.36 for each dollar of assets. An increasing asset utilization means that Progressive is more efficient with each dollar of assets it utilizes for everyday operations.

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Progressive or Prudential is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Progressive dividends

A dividend is the distribution of a portion of Progressive earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Progressive dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Progressive one year expected dividend income is about $1.04 per share.

As of 01/17/2021, Dividend Yield is likely to grow to 0.0225, while Preferred Dividends Income Statement Impact is likely to drop slightly above 19.1 M.

	Last Reported	Projected for 2021
Preferred Dividends Income Statement Impact	19.3 M	19.1 M
Payment of Dividends and Other Cash Distributions	-753.1 M	-812.6 M
Dividend Yield	0.0171	0.0225
Dividends per Basic Common Share	1.29	1.20

Investing in dividend-paying stocks, such as Progressive is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Progressive must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Progressive. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Progressive's Liquidity

Progressive financial leverage refers to using borrowed capital as a funding source to finance Progressive ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Progressive financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Progressive's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Progressive, but it might be worth checking our own buy vs. sell analysis

Correlation Between Progressive and Prudential Financial

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Progressive together with similar or unrelated positions with a negative correlation. For example, you can also add Prudential Financial to your portfolio. If Prudential Financial is not perfectly correlated to Progressive it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Progressive for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between PGR and PRU for more information.

Note

Are you currently holding both Progressive and Prudential Financial in your portfolio? Please note if you are using this as a pair-trade strategy between Progressive and Prudential Financial, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

A Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Progressive revenue. Based on the latest financial disclosure, Progressive reported 40.54 B of revenue. This is 261.65% higher than that of the Financial Services sector and significantly higher than that of the Insurance?Property & Casualty industry. The revenue for all United States stocks is significantly lower than that of Progressive. As for Prudential Financial we see revenue of 59.81 B, which is much higher than that of the Insurance?Property & Casualty

	Progressive	40.54 Billion
	Sector	0.0
	Prudential	59.81 Billion

40.5 B

Progressive

Sector

59.8 B

Prudential

Progressive is projected to stay under $97 in October

Mean deviation is down to 1.16. It may connote a possible volatility fall. Progressive has relatively low volatility with skewness of 0.52 and kurtosis of 1.09. However, we advise all investors to independently investigate Progressive to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Take On Progressive

While some companies within the insurance?property & casualty industry are still a little expensive, even after the recent corrections, Progressive may offer a potential longer-term growth to retail investors. To summarize, as of the 16th of September 2020, our primary 30 days buy-hold-sell advice on the enterprise is Buy. However, we believe Progressive is overvalued with low probability of distress for the next two years.

About Contributor

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Progressive. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2021 Macroaxis LLC