Head to Head Analysis: The Hartford Insurance Group (NYSE:HIG) & Employers (NYSE:EIG)

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

Valuation & Earnings

This table compares The Hartford Insurance Group and Employers”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Hartford Insurance Group	$28.37 billion	1.23	$3.84 billion	$15.47	8.36
Employers	$858.70 million	1.05	$10.80 million	$0.69	72.47

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for The Hartford Insurance Group and Employers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hartford Insurance Group	0	11	6	0	2.35
Employers	0	2	1	0	2.33

The Hartford Insurance Group presently has a consensus target price of $146.67, indicating a potential upside of 13.45%. Employers has a consensus target price of $59.00, indicating a potential upside of 17.99%. Given Employers’ higher probable upside, analysts plainly believe Employers is more favorable than The Hartford Insurance Group.

Dividends

The Hartford Insurance Group pays an annual dividend of $2.40 per share and has a dividend yield of 1.9%. Employers pays an annual dividend of $1.36 per share and has a dividend yield of 2.7%. The Hartford Insurance Group pays out 15.5% of its earnings in the form of a dividend. Employers pays out 197.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The Hartford Insurance Group has increased its dividend for 12 consecutive years and Employers has increased its dividend for 4 consecutive years.

Volatility & Risk

The Hartford Insurance Group has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Employers has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Profitability

This table compares The Hartford Insurance Group and Employers’ 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%
Employers	0.91%	1.30%	0.35%

Insider and Institutional Ownership

93.4% of The Hartford Insurance Group shares are owned by institutional investors. Comparatively, 80.5% of Employers shares are owned by institutional investors. 1.3% of The Hartford Insurance Group shares are owned by insiders. Comparatively, 1.3% of Employers shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

The Hartford Insurance Group beats Employers on 13 of the 16 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 Employers

Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. The company operates in two segments, Employers and Cerity. It offers workers’ compensation insurance to small businesses in low to medium hazard industries under the Employers and Cerity brands. The company markets its products through local, regional, and national agents and brokers; alternative distribution channels; and national, regional, and local trade groups and associations, as well as directly to customers. Employers Holdings, Inc. was founded in 2000 and is based in Henderson, Nevada.