Employers (NYSE:EIG) & The Hartford Insurance Group (NYSE:HIG) Head-To-Head Review

Employers (NYSE:EIG) and The Hartford Insurance Group (NYSE:HIG) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Valuation and Earnings

This table compares Employers and The Hartford Insurance Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Employers	$858.70 million	1.05	$10.80 million	$0.69	72.47
The Hartford Insurance Group	$28.37 billion	1.23	$3.84 billion	$15.47	8.36

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

Dividends

Employers pays an annual dividend of $1.36 per share and has a dividend yield of 2.7%. The Hartford Insurance Group pays an annual dividend of $2.40 per share and has a dividend yield of 1.9%. Employers pays out 197.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The Hartford Insurance Group pays out 15.5% of its earnings in the form of a dividend. Employers has increased its dividend for 4 consecutive years and The Hartford Insurance Group has increased its dividend for 12 consecutive years.

Institutional and Insider Ownership

80.5% of Employers shares are owned by institutional investors. Comparatively, 93.4% of The Hartford Insurance Group shares are owned by institutional investors. 1.3% of Employers shares are owned by insiders. Comparatively, 1.3% of The Hartford Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Employers and The Hartford Insurance Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Employers	0	2	1	0	2.33
The Hartford Insurance Group	0	11	6	0	2.35

Employers presently has a consensus price target of $59.00, suggesting a potential upside of 17.99%. The Hartford Insurance Group has a consensus price target of $146.67, suggesting a potential upside of 13.45%. Given Employers’ higher possible upside, equities analysts clearly believe Employers is more favorable than The Hartford Insurance Group.

Volatility and Risk

Employers has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, The Hartford Insurance Group has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Profitability

This table compares Employers and The Hartford Insurance Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Employers	0.91%	1.30%	0.35%
The Hartford Insurance Group	15.00%	21.66%	4.68%

Summary

The Hartford Insurance Group beats Employers on 13 of the 16 factors compared between the two stocks.

About Employers

Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. The company operates in two segments, Employers and Cerity. It offers workers’ compensation insurance to small businesses in low to medium hazard industries under the Employers and Cerity brands. The company markets its products through local, regional, and national agents and brokers; alternative distribution channels; and national, regional, and local trade groups and associations, as well as directly to customers. Employers Holdings, Inc. was founded in 2000 and is based in Henderson, Nevada.

About The Hartford Insurance Group

The Hartford Financial Services Group, Inc., together with its subsidiaries, provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Its Commercial Lines segment offers insurance coverages, including workers' compensation, property, automobile, general and professional liability, package business, umbrella, fidelity and surety, marine, livestock, accident, health, and reinsurance through regional offices, branches, sales and policyholder service centers, independent retail agents and brokers, wholesale agents, and reinsurance brokers. The company's Personal Lines segment provides automobile, homeowners, and personal umbrella coverages through direct-to-consumer channels and independent agents. Its Property & Casualty Other Operations segment offers coverage for asbestos and environmental exposures. The company's Group Benefits segment provides group life, disability, and other group coverages to members of employer groups, associations, and affinity groups through direct insurance policies; reinsurance to other insurance companies; employer paid and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and leave management solution. This segment also distributes its group insurance products and services through brokers, consultants, third-party administrators, trade associations, and private exchanges. Its Hartford Funds segment offers managed mutual funds across various asset classes; and exchange-traded funds through broker-dealer organizations, independent financial advisers, defined contribution plans, financial consultants, bank trust groups, and registered investment advisers, as well as investment management, distribution, and administrative services, such as product design, implementation, and oversight. The company was founded in 1810 and is headquartered in Hartford, Connecticut.