Head-To-Head Comparison: Fidelis Insurance (NYSE:FIHL) & HCI Group (NYSE:HCI)

HCI Group (NYSE:HCI) and Fidelis Insurance (NYSE:FIHL) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Dividends

HCI Group pays an annual dividend of $1.60 per share and has a dividend yield of 1.8%. Fidelis Insurance pays an annual dividend of $0.40 per share and has a dividend yield of 2.3%. HCI Group pays out 16.3% of its earnings in the form of a dividend. Fidelis Insurance pays out 9.7% 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. Fidelis Insurance is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares HCI Group and Fidelis Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HCI Group	17.72%	40.30%	6.32%
Fidelis Insurance	23.31%	17.97%	3.87%

Institutional & Insider Ownership

87.0% of HCI Group shares are held by institutional investors. Comparatively, 82.0% of Fidelis Insurance shares are held by institutional investors. 25.3% of HCI Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares HCI Group and Fidelis Insurance’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HCI Group	$627.95 million	1.52	$79.03 million	$9.83	9.24
Fidelis Insurance	$2.06 billion	0.99	$2.13 billion	$4.12	4.23

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

Risk & Volatility

HCI Group has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Fidelis Insurance has a beta of -0.1, meaning that its share price is 110% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for HCI Group and Fidelis Insurance, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HCI Group	0	0	5	0	3.00
Fidelis Insurance	0	3	3	0	2.50

HCI Group presently has a consensus target price of $130.25, indicating a potential upside of 43.38%. Fidelis Insurance has a consensus target price of $20.00, indicating a potential upside of 14.84%. Given HCI Group’s stronger consensus rating and higher possible upside, analysts plainly believe HCI Group is more favorable than Fidelis Insurance.

Summary

HCI Group beats Fidelis Insurance on 11 of the 16 factors compared between the two stocks.

About HCI Group

HCI Group, Inc., together with its subsidiaries, engages in the property and casualty insurance, insurance management, reinsurance, real estate, and information technology businesses in Florida. It provides residential insurance products, such as homeowners, fire, flood, and wind-only insurance to homeowners, condominium owners, and tenants for properties, as well as offers reinsurance programs. The company also owns and operates waterfront properties and retail shopping centers, and an office building, as well as commercial properties for investment purposes. In addition, it designs and develops web-based applications and products for mobile devices, including SAMS, an online policy administration platform; Harmony, a policy administration platform; ClaimColony, an end-to-end claims management platform; and AtlasViewer, a mapping and data visualization platform. The company was formerly known as Homeowners Choice, Inc. and changed its name to HCI Group, Inc. in May 2013. HCI Group, Inc. was incorporated in 2006 and is headquartered in Tampa, Florida.

About Fidelis Insurance

Fidelis Insurance Holdings Limited, together with its subsidiaries, provides insurance and reinsurance products in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, and other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.