Critical Review: Hamilton Insurance Group (NYSE:HG) versus Allstate (NYSE:ALL)

Allstate (NYSE:ALL) and Hamilton Insurance Group (NYSE:HG) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allstate	16.57%	38.37%	9.29%
Hamilton Insurance Group	16.83%	23.76%	6.64%

Volatility and Risk

Allstate has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500. Comparatively, Hamilton Insurance Group has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Allstate and Hamilton Insurance Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allstate	3	10	7	2	2.36
Hamilton Insurance Group	0	3	4	2	2.89

Allstate currently has a consensus target price of $273.48, suggesting a potential upside of 2.11%. Hamilton Insurance Group has a consensus target price of $36.62, suggesting a potential downside of 4.69%. Given Allstate’s higher probable upside, equities analysts plainly believe Allstate is more favorable than Hamilton Insurance Group.

Institutional and Insider Ownership

76.5% of Allstate shares are owned by institutional investors. Comparatively, 29.2% of Hamilton Insurance Group shares are owned by institutional investors. 1.5% of Allstate shares are owned by insiders. Comparatively, 3.0% of Hamilton Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Allstate and Hamilton Insurance Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allstate	$67.69 billion	0.98	$10.28 billion	$44.16	6.06
Hamilton Insurance Group	$2.91 billion	1.30	$576.67 million	$5.23	7.35

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

Summary

Allstate beats Hamilton Insurance Group on 8 of the 14 factors compared between the two stocks.

About Allstate

Allstate Corporation is a U.S.-based insurance company that provides property and casualty coverage and related protection products. Its offerings include auto, homeowners, renters, condominium, motorcycle and recreational vehicle insurance, as well as life insurance and roadside assistance. The company sells products through its Allstate-branded business and other businesses, including National General, using agents and direct-to-consumer channels. Allstate primarily serves customers in the United States.

About Hamilton Insurance Group

Hamilton Insurance Group is a global specialty insurance and reinsurance company headquartered in Bermuda. Founded in 2013, it operates through businesses in Bermuda, the United States and the United Kingdom. The company underwrites a range of property, casualty and specialty risks, offering insurance and reinsurance products to businesses and other clients. Its operations include Hamilton Re in Bermuda, Hamilton Global Specialty in London and Hamilton Select in the United States. Pina Albo became Hamilton Insurance Group’s chief executive officer in 2023.