Financial Survey: Hamilton Insurance Group (NYSE:HG) versus The Hanover Insurance Group (NYSE:THG)

The Hanover Insurance Group (NYSE:THG) and Hamilton Insurance Group (NYSE:HG) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Insider & Institutional Ownership

86.6% of The Hanover Insurance Group shares are owned by institutional investors. Comparatively, 29.2% of Hamilton Insurance Group shares are owned by institutional investors. 2.8% of The Hanover Insurance Group shares are owned by company insiders. Comparatively, 3.0% of Hamilton Insurance Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

The Hanover Insurance Group has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Hamilton Insurance Group has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
The Hanover Insurance Group	10.97%	21.39%	4.59%
Hamilton Insurance Group	19.56%	22.60%	6.47%

Analyst Ratings

This is a summary of recent recommendations and price targets for The Hanover Insurance Group and Hamilton Insurance Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hanover Insurance Group	0	5	3	2	2.70
Hamilton Insurance Group	0	3	4	2	2.89

The Hanover Insurance Group presently has a consensus price target of $235.00, indicating a potential downside of 5.63%. Hamilton Insurance Group has a consensus price target of $36.38, indicating a potential upside of 0.34%. Given Hamilton Insurance Group’s stronger consensus rating and higher possible upside, analysts clearly believe Hamilton Insurance Group is more favorable than The Hanover Insurance Group.

Valuation and Earnings

This table compares The Hanover Insurance Group and Hamilton Insurance Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Hanover Insurance Group	$6.80 billion	1.26	$662.50 million	$20.91	11.91
Hamilton Insurance Group	$3.17 billion	1.13	$576.67 million	$5.23	6.93

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

Summary

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

About The Hanover Insurance Group

The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States. The company operates through four segments: Core Commercial, Specialty, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, workers' compensation, and other commercial lines coverage. The Specialty segment provides professional and executive Lines, marine, and surety and other, as well as specialty property and casualty, such as program business, specialty industrial business, excess and surplus business, and specialty general liability coverage. The Personal Lines segment offers personal automobile and homeowner's coverages, as well as other personal coverages, such as personal umbrella, inland marine, fire, personal watercraft, personal cyber, and other miscellaneous coverages. The Other segment markets investment advisory services to institutions, insurance companies, pension funds, and other organizations. The Hanover Insurance Group, Inc. markets its products and services through independent agents and brokers. The company was formerly known as Allmerica Financial Corp. and changed its name to The Hanover Insurance Group, Inc. in December 2005. The Hanover Insurance Group, Inc. was founded in 1852 and is headquartered in Worcester, Massachusetts.

About Hamilton Insurance Group

Hamilton Insurance Group, Ltd., through its subsidiaries, provides underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company operates Hamilton Global Specialty, Hamilton Select, and Hamilton Re underwriting platforms. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property reinsurance and insurance; and specialty reinsurance solutions, including accident and health, aviation and space, crisis management, mortgage, financial lines, marine and energy, and multiline specialty. In addition, it offers accident and health, cyber, energy, environmental, financial lines, fine art and specie, kidnap and ransom, mergers and acquisitions, marine and energy liability, political risk and violence, professional liability, property binders, property direct and facultative, professional lines, space, upstream energy, excess casualty, war and terrorism, allied medical, management liability, medical professionals, general liability, products liability and contractors, and small business casualty insurance plans, as well as surety and treaty reinsurance products. The company was incorporated in 2013 and is headquartered in Pembroke, Bermuda.