Comparing White Mountains Insurance Group (NYSE:WTM) & Horace Mann Educators (NYSE:HMN)

White Mountains Insurance Group (NYSE:WTMGet Rating) and Horace Mann Educators (NYSE:HMNGet Rating) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Dividends

White Mountains Insurance Group pays an annual dividend of $1.00 per share and has a dividend yield of 0.1%. Horace Mann Educators pays an annual dividend of $1.28 per share and has a dividend yield of 3.4%. White Mountains Insurance Group pays out -1.9% of its earnings in the form of a dividend. Horace Mann Educators pays out 45.6% 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. Horace Mann Educators has raised its dividend for 14 consecutive years. Horace Mann Educators is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares White Mountains Insurance Group and Horace Mann Educators’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
White Mountains Insurance Group N/A -6.75% -3.55%
Horace Mann Educators 8.71% 7.57% 0.92%

Volatility and Risk

White Mountains Insurance Group has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Horace Mann Educators has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Insider and Institutional Ownership

89.0% of White Mountains Insurance Group shares are owned by institutional investors. 2.6% of White Mountains Insurance Group shares are owned by company insiders. Comparatively, 3.2% of Horace Mann Educators shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares White Mountains Insurance Group and Horace Mann Educators’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
White Mountains Insurance Group $944.80 million 3.67 -$275.40 million ($53.65) -21.69
Horace Mann Educators $1.33 billion 1.18 $142.80 million $2.81 13.47

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for White Mountains Insurance Group and Horace Mann Educators, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
White Mountains Insurance Group 0 0 0 0 N/A
Horace Mann Educators 0 1 0 0 2.00

Horace Mann Educators has a consensus price target of $40.00, suggesting a potential upside of 5.68%. Given Horace Mann Educators’ higher possible upside, analysts clearly believe Horace Mann Educators is more favorable than White Mountains Insurance Group.

Summary

Horace Mann Educators beats White Mountains Insurance Group on 12 of the 15 factors compared between the two stocks.

About White Mountains Insurance Group (Get Rating)

White Mountains Insurance Group, Ltd., through its subsidiaries, provides insurance and other financial services in the United States. The company operates through five segments: HG Global/BAM, Ark, NSM, Kudu, and Other Operations. The HG Global/BAM segment provides insurance on municipal bonds issued to finance public purposes, such as schools, utilities, and transportation facilities, as well as reinsurance protection services. The Ark segment writes a portfolio of reinsurance and insurance, including property, marine and energy, accident and health, casualty, and specialty products. The NSM segment operates as a managing general agent and program administrator for specialty property and casualty insurance to various sectors comprising specialty transportation, real estate, social services, and pet. The Kudu segment provides capital solutions to boutique asset and wealth managers for generational ownership transfers, management buyouts, acquisitions and growth finances, and legacy partner liquidity, as well as strategic assistance to investees. The Other Operations segment offers insurance solutions to travel industry through broker channel and on a direct-to-consumer basis; and manages separate accounts and pooled investment vehicles for insurance-linked securities sectors, including catastrophe bonds, collateralized reinsurance investments, and industry loss warranties of third-party clients. White Mountains Insurance Group, Ltd. was incorporated in 1980 and is headquartered in Hamilton, Bermuda.

About Horace Mann Educators (Get Rating)

Horace Mann Educators Corporation, together with its subsidiaries, operates as an insurance holding company in the United States. It operates in three segments: Property & Casualty, Life & Retirement, and Supplemental & Group Benefits. The company underwrites and markets personal lines of property and casualty insurance, including personal lines auto and property insurance products; supplemental insurance products, which include cancer, heart, hospital, supplemental disability, and accident coverages; retirement products, such as tax-qualified fixed and variable annuities; and life insurance products comprising whole life and term, as well as indexed universal life insurance products. It also offers student loan solutions, including online student loan management accounts for educators. The company markets its products through its sales force of full-time exclusive agents to K-12 teachers, administrators, and other employees of public schools and their families. Horace Mann Educators Corporation was founded in 1945 and is headquartered in Springfield, Illinois.

Receive News & Ratings for White Mountains Insurance Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for White Mountains Insurance Group and related companies with MarketBeat.com's FREE daily email newsletter.