Analyzing The Hartford Insurance Group (NYSE:HIG) and Unum Group (NYSE:UNM)

Unum Group (NYSE:UNM) and The Hartford Insurance Group (NYSE:HIG) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Volatility & Risk

Unum Group has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500. Comparatively, The Hartford Insurance Group has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Unum Group	5.26%	12.60%	2.18%
The Hartford Insurance Group	15.85%	20.93%	4.52%

Insider and Institutional Ownership

86.6% of Unum Group shares are owned by institutional investors. Comparatively, 93.4% of The Hartford Insurance Group shares are owned by institutional investors. 1.0% of Unum Group shares are owned by company insiders. Comparatively, 1.3% of The Hartford Insurance Group 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.

Analyst Recommendations

This is a breakdown of current ratings for Unum Group and The Hartford Insurance Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unum Group	0	6	8	0	2.57
The Hartford Insurance Group	0	12	5	1	2.39

Unum Group presently has a consensus target price of $99.42, indicating a potential upside of 9.20%. The Hartford Insurance Group has a consensus target price of $144.69, indicating a potential upside of 7.37%. Given Unum Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Unum Group is more favorable than The Hartford Insurance Group.

Valuation and Earnings

This table compares Unum Group 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
Unum Group	$13.08 billion	1.10	$738.50 million	$4.29	21.22
The Hartford Insurance Group	$28.37 billion	1.27	$3.84 billion	$16.52	8.16

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

Dividends

Unum Group pays an annual dividend of $2.02 per share and has a dividend yield of 2.2%. The Hartford Insurance Group pays an annual dividend of $2.40 per share and has a dividend yield of 1.8%. Unum Group pays out 47.1% of its earnings in the form of a dividend. The Hartford Insurance Group pays out 14.5% 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. Unum Group has raised its dividend for 16 consecutive years and The Hartford Insurance Group has raised its dividend for 12 consecutive years. Unum Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

The Hartford Insurance Group beats Unum Group on 12 of the 18 factors compared between the two stocks.

About Unum Group

Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, Poland, and internationally. It operates through Unum US, Unum International, Colonial Life, and Closed Block segment. The company offers group long-term and short-term disability, group life, and accidental death and dismemberment products; supplemental and voluntary products, such as individual disability, voluntary benefits, and dental and vision products; and accident, sickness, disability, life, and cancer and critical illness products. It also provides group pension, individual life and corporate-owned life insurance, reinsurance pools and management operations, and other miscellaneous products. The company sells its products primarily to employers for the benefit of employees. It sells its products through field sales personnel, independent brokers, consultants, and independent contractor agent sales force and brokers. Unum Group was founded in 1848 and is based in Chattanooga, Tennessee.

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.