Hartford Financial Services Group, Inc. (The) (HIG) vs. American National Insurance (ANAT) Head-To-Head Review

Hartford Financial Services Group, Inc. (The) (NYSE: HIG) and American National Insurance (NASDAQ:ANAT) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Volatility & Risk

Hartford Financial Services Group, Inc. (The) has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, American National Insurance has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.

Profitability

This table compares Hartford Financial Services Group, Inc. (The) and American National Insurance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hartford Financial Services Group, Inc. (The) 3.73% 9.13% 0.71%
American National Insurance 5.95% 2.61% 0.50%

Institutional and Insider Ownership

88.3% of Hartford Financial Services Group, Inc. (The) shares are owned by institutional investors. Comparatively, 65.2% of American National Insurance shares are owned by institutional investors. 1.5% of Hartford Financial Services Group, Inc. (The) shares are owned by insiders. Comparatively, 23.5% of American National Insurance shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Hartford Financial Services Group, Inc. (The) and American National Insurance, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hartford Financial Services Group, Inc. (The) 0 4 6 0 2.60
American National Insurance 0 0 0 0 N/A

Hartford Financial Services Group, Inc. (The) presently has a consensus price target of $56.44, suggesting a potential upside of 5.09%. Given Hartford Financial Services Group, Inc. (The)’s higher possible upside, equities research analysts clearly believe Hartford Financial Services Group, Inc. (The) is more favorable than American National Insurance.

Valuation and Earnings

This table compares Hartford Financial Services Group, Inc. (The) and American National Insurance’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hartford Financial Services Group, Inc. (The) $18.55 billion 1.05 $1.28 billion $1.79 30.01
American National Insurance $3.28 billion 0.96 $260.52 million $7.23 16.14

Hartford Financial Services Group, Inc. (The) has higher revenue and earnings than American National Insurance. American National Insurance is trading at a lower price-to-earnings ratio than Hartford Financial Services Group, Inc. (The), indicating that it is currently the more affordable of the two stocks.

Dividends

Hartford Financial Services Group, Inc. (The) pays an annual dividend of $0.92 per share and has a dividend yield of 1.7%. American National Insurance pays an annual dividend of $3.28 per share and has a dividend yield of 2.8%. Hartford Financial Services Group, Inc. (The) pays out 51.4% of its earnings in the form of a dividend. American National Insurance pays out 45.4% 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. Hartford Financial Services Group, Inc. (The) has increased its dividend for 4 consecutive years. American National Insurance is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Hartford Financial Services Group, Inc. (The) beats American National Insurance on 9 of the 16 factors compared between the two stocks.

Hartford Financial Services Group, Inc. (The) Company Profile

The Hartford Financial Services Group, Inc. is a holding company for insurance and financial services subsidiaries. The Company’s segments include Commercial Lines, which provides workers’ compensation, property, automobile, marine, livestock, liability and umbrella coverages primarily throughout the United States; Personal Lines, which provides automobile, homeowners and personal umbrella coverages to individuals across the United States; Group Benefits, which provides group life, accident and disability coverage, and other products and services; Property & Casualty Other Operations, which includes certain property and casualty operations; Mutual Funds, which provides investment management, administration, product distribution and related services to investors; Talcott Resolution, which consists of the run-off of the Company’s the United States individual and institutional annuity, and Private Placement Life Insurance (PPLI) businesses, and Corporate.

American National Insurance Company Profile

American National Insurance Company is engaged in life insurance, annuities, and property and casualty insurance. The Company also offers limited health insurance. Its family of companies includes six life insurance companies, eight property and casualty insurance companies, and various non-insurance subsidiaries. Its business segments include Life, which offers products, such as Whole Life, Term Life, Universal Life, Variable Universal Life and Credit Life Insurance; Annuity, including products, such as Deferred Annuity, Single Premium Immediate Annuity and Variable Annuity; Health, including, such as Medicare Supplement, Supplemental Insurance, Stop-Loss, Credit Disability and Medical Expense; Property and Casualty, which offers products, such as Personal Lines, Commercial Lines and Credit-Related Property Insurance products, and Corporate and Other, which consists of its invested assets that are not used to support insurance activities, and non-insurance subsidiaries.

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