Critical Analysis: Primerica (NYSE:PRI) & The Hartford Insurance Group (NYSE:HIG)

The Hartford Insurance Group (NYSE:HIG) and Primerica (NYSE:PRI) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Earnings and Valuation

This table compares The Hartford Insurance Group and Primerica”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Hartford Insurance Group	$28.37 billion	1.29	$3.84 billion	$15.47	8.74
Primerica	$3.29 billion	2.73	$751.23 million	$24.90	11.71

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

Dividends

The Hartford Insurance Group pays an annual dividend of $2.40 per share and has a dividend yield of 1.8%. Primerica pays an annual dividend of $4.80 per share and has a dividend yield of 1.6%. The Hartford Insurance Group pays out 15.5% of its earnings in the form of a dividend. Primerica pays out 19.3% 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. The Hartford Insurance Group has increased its dividend for 12 consecutive years and Primerica has increased its dividend for 2 consecutive years. The Hartford Insurance Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

The Hartford Insurance Group has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Primerica has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Institutional & Insider Ownership

93.4% of The Hartford Insurance Group shares are held by institutional investors. Comparatively, 90.9% of Primerica shares are held by institutional investors. 1.3% of The Hartford Insurance Group shares are held by company insiders. Comparatively, 0.6% of Primerica shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares The Hartford Insurance Group and Primerica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Hartford Insurance Group	15.00%	21.66%	4.68%
Primerica	23.20%	32.45%	5.35%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for The Hartford Insurance Group and Primerica, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hartford Insurance Group	0	11	5	1	2.41
Primerica	0	6	3	0	2.33

The Hartford Insurance Group presently has a consensus price target of $149.07, suggesting a potential upside of 10.21%. Primerica has a consensus price target of $315.57, suggesting a potential upside of 8.19%. Given The Hartford Insurance Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe The Hartford Insurance Group is more favorable than Primerica.

Summary

The Hartford Insurance Group beats Primerica on 11 of the 18 factors compared between the two stocks.

About The Hartford Insurance Group

The Hartford Financial Services Group, Inc., together with its subsidiaries, provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Its Commercial Lines segment offers insurance coverages, including workers' compensation, property, automobile, general and professional liability, package business, umbrella, fidelity and surety, marine, livestock, accident, health, and reinsurance through regional offices, branches, sales and policyholder service centers, independent retail agents and brokers, wholesale agents, and reinsurance brokers. The company's Personal Lines segment provides automobile, homeowners, and personal umbrella coverages through direct-to-consumer channels and independent agents. Its Property & Casualty Other Operations segment offers coverage for asbestos and environmental exposures. The company's Group Benefits segment provides group life, disability, and other group coverages to members of employer groups, associations, and affinity groups through direct insurance policies; reinsurance to other insurance companies; employer paid and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and leave management solution. This segment also distributes its group insurance products and services through brokers, consultants, third-party administrators, trade associations, and private exchanges. Its Hartford Funds segment offers managed mutual funds across various asset classes; and exchange-traded funds through broker-dealer organizations, independent financial advisers, defined contribution plans, financial consultants, bank trust groups, and registered investment advisers, as well as investment management, distribution, and administrative services, such as product design, implementation, and oversight. The company was founded in 1810 and is headquartered in Hartford, Connecticut.

About Primerica

Primerica, Inc., together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates in four segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities, and fixed indexed annuities. The Senior Health segment offers segregated funds; and medicare advantage and supplement plans. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense, and motor vehicle-related matters; ID theft defense services; auto and homeowners' insurance; home automation solutions; and insurance products, including supplemental and accidental death, and disability insurance. It distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.