Hartford Financial Services Group (NYSE: HIG) and Fortegra Financial (NYSE:FRF) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
This is a summary of recent ratings and recommmendations for Hartford Financial Services Group and Fortegra Financial, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hartford Financial Services Group||0||5||6||0||2.55|
Hartford Financial Services Group presently has a consensus target price of $58.55, suggesting a potential upside of 8.68%. Given Hartford Financial Services Group’s higher probable upside, analysts clearly believe Hartford Financial Services Group is more favorable than Fortegra Financial.
Earnings & Valuation
This table compares Hartford Financial Services Group and Fortegra Financial’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hartford Financial Services Group||$16.97 billion||1.13||-$3.13 billion||($8.84)||-6.09|
Fortegra Financial has lower revenue, but higher earnings than Hartford Financial Services Group. Hartford Financial Services Group is trading at a lower price-to-earnings ratio than Fortegra Financial, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
91.1% of Hartford Financial Services Group shares are held by institutional investors. 1.5% of Hartford Financial Services Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Hartford Financial Services Group has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Fortegra Financial has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.
Hartford Financial Services Group pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. Fortegra Financial does not pay a dividend. Hartford Financial Services Group pays out -11.3% of its earnings in the form of a dividend. Hartford Financial Services Group has increased its dividend for 5 consecutive years.
This table compares Hartford Financial Services Group and Fortegra Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hartford Financial Services Group||-16.79%||7.89%||0.57%|
Hartford Financial Services Group beats Fortegra Financial on 11 of the 14 factors compared between the two stocks.
About Hartford Financial Services Group
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.
About Fortegra Financial
Fortegra Financial Corporation is specializing in insurance products and services. The Company’s business process outsourcing segment offers various administrative services under the Consecta and Pacific Benefits Group Northwest, LLC brand names to insurance and other financial services companies. The Company’s Payment Protection segment delivers credit insurance, debt protection, warranty and service contracts, and motor club solutions under the Life of the South, Continental Car Club, United Motor Club, and Auto Knight Motor Club brand names to consumer finance companies, regional banks, community banks, retailers, small loan companies, warranty administrators, automobile dealers, vacation ownership developers, and credit unions.
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