Analyzing Genworth Financial (GNW) & Hartford Financial Services Group, Inc. (The) (HIG)

Genworth Financial (NYSE: GNW) and Hartford Financial Services Group, Inc. (The) (NYSE:HIG) are both multiline insurance & brokers – nec companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Dividends

Hartford Financial Services Group, Inc. (The) pays an annual dividend of $0.92 per share and has a dividend yield of 1.6%. Genworth Financial does not pay a dividend. Hartford Financial Services Group, Inc. (The) pays out 70.2% of its earnings in the form of a dividend. Genworth Financial has raised its dividend for 4 consecutive years.

Risk and Volatility

Genworth Financial has a beta of 2.8, indicating that its share price is 180% more volatile than the S&P 500. Comparatively, Hartford Financial Services Group, Inc. (The) has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Earnings & Valuation

This table compares Genworth Financial and Hartford Financial Services Group, Inc. (The)’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Genworth Financial $8.37 billion 0.20 -$277.00 million $0.71 4.76
Hartford Financial Services Group, Inc. (The) $18.30 billion 1.09 $896.00 million $1.31 42.85

Hartford Financial Services Group, Inc. (The) has higher revenue and earnings than Genworth Financial. Genworth Financial 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.

Insider & Institutional Ownership

67.9% of Genworth Financial shares are owned by institutional investors. Comparatively, 90.3% of Hartford Financial Services Group, Inc. (The) shares are owned by institutional investors. 0.3% of Genworth Financial shares are owned by company insiders. Comparatively, 1.5% of Hartford Financial Services Group, Inc. (The) shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Genworth Financial 3.88% 1.57% 0.22%
Hartford Financial Services Group, Inc. (The) 2.63% 8.21% 0.62%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Genworth Financial and Hartford Financial Services Group, Inc. (The), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genworth Financial 0 3 1 0 2.25
Hartford Financial Services Group, Inc. (The) 0 4 6 0 2.60

Genworth Financial presently has a consensus target price of $3.88, indicating a potential upside of 14.64%. Hartford Financial Services Group, Inc. (The) has a consensus target price of $56.60, indicating a potential upside of 0.82%. Given Genworth Financial’s higher possible upside, research analysts plainly believe Genworth Financial is more favorable than Hartford Financial Services Group, Inc. (The).

Summary

Hartford Financial Services Group, Inc. (The) beats Genworth Financial on 12 of the 17 factors compared between the two stocks.

About Genworth Financial

Genworth Financial, Inc. (Genworth) is a financial security company. The Company provides insurance, wealth management, investment and financial solutions. As of December 31, 2011, the Company had more than 15 million customers, with a presence in more than 25 countries. The Company operates in Insurance, Mortgage Insurance and Corporate and Runoff. The Mortgage Insurance Division includes the business segments, such as International Mortgage Insurance and U.S. Mortgage Insurance. The Corporate and Runoff Division includes the Runoff segment and Corporate and Other activities. In September 2013, Genworth Financial, Inc closed the sale of its Wealth Management business, including Genworth Financial Wealth Management and alternative solutions provider, the Altegris companies, to a partnership of Aquiline Capital Partners and Genstar Capital.

About Hartford Financial Services Group, Inc. (The)

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.

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

Leave a Reply