Argo Group International Holdings (AGII) vs. HCI Group (HCII) Head-To-Head Analysis

Argo Group International Holdings (NASDAQ: AGII) and HCI Group (NASDAQ:HCII) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Insider and Institutional Ownership

85.4% of Argo Group International Holdings shares are owned by institutional investors. 4.9% of Argo Group International Holdings shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Argo Group International Holdings pays an annual dividend of $1.08 per share and has a dividend yield of 1.8%. HCI Group does not pay a dividend. Argo Group International Holdings pays out 63.5% of its earnings in the form of a dividend.

Volatility and Risk

Argo Group International Holdings has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, HCI Group has a beta of 2.29, meaning that its share price is 129% more volatile than the S&P 500.

Profitability

This table compares Argo Group International Holdings and HCI Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Argo Group International Holdings 3.15% 1.36% 0.31%
HCI Group 14.08% 15.29% 4.84%

Valuation & Earnings

This table compares Argo Group International Holdings and HCI Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Argo Group International Holdings $1.58 billion 1.13 $146.70 million $1.70 35.29
HCI Group N/A N/A N/A ($1.65) -20.02

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Argo Group International Holdings and HCI Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Argo Group International Holdings 1 1 0 0 1.50
HCI Group 0 0 0 0 N/A

Argo Group International Holdings currently has a consensus price target of $70.00, suggesting a potential upside of 16.67%. Given Argo Group International Holdings’ higher probable upside, equities analysts clearly believe Argo Group International Holdings is more favorable than HCI Group.

Summary

Argo Group International Holdings beats HCI Group on 6 of the 11 factors compared between the two stocks.

Argo Group International Holdings Company Profile

Argo Group International Holdings, Ltd. is an underwriter of specialty insurance and reinsurance products in the property and casualty market. The Company operates through four segments: Excess and Surplus Lines, Commercial Specialty, International Specialty and Syndicate 1200. Excess and Surplus Lines segment carriers focus on risks that the standard (admitted) market is unwilling or unable to underwrite. The Excess and Surplus Lines segment consists of two operating platforms: Colony Specialty and Argo Pro. Commercial Specialty segment provides property, casualty and surety coverages designed to meet the insurance needs of businesses within certain markets. International Specialty segment underwrites insurance and reinsurance risks. It operate as Argo Re, the Casualty and Professional Lines unit of Argo Insurance in Bermuda, and Argo Seguros Brazil, S.A. in Brazil. The Syndicate 1200 segment underwrites around the world property, specialty and non-United States liability insurance.

HCI Group Company Profile

HCI Group, Inc. (HCI) is an insurance holding company. The Company operates through four operating divisions: property and casualty insurance, reinsurance, investment real estate and information technology. Its operations include Insurance Operations and Other Operations. Its Insurance Operations include property and casualty insurance, and reinsurance. The Company, through its subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc. (HCPCI), provides property and casualty insurance to homeowners, condominium owners and tenants on properties located in Florida. HCPCI also offers flood-endorsed and wind-only policies to new and pre-existing Florida customers. Its Other Operations include information technology (IT) and real estate. The Company’s real estate operations consist of multiple properties it owns and operates.

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