Critical Contrast: Hartford Financial Services Group, Inc. (The) (HIG) versus Its Rivals

Hartford Financial Services Group, Inc. (The) (NYSE: HIG) is one of 23 public companies in the “Multiline Insurance & Brokers” industry, but how does it weigh in compared to its peers? We will compare Hartford Financial Services Group, Inc. (The) to related businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

Risk and Volatility

Hartford Financial Services Group, Inc. (The) has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Hartford Financial Services Group, Inc. (The)’s peers have a beta of 1.39, indicating that their average stock price is 39% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Hartford Financial Services Group, Inc. (The) 2.63% 8.21% 0.62%
Hartford Financial Services Group, Inc. (The) Competitors 3.85% 9.20% 2.34%

Insider and Institutional Ownership

90.2% of Hartford Financial Services Group, Inc. (The) shares are owned by institutional investors. Comparatively, 62.2% of shares of all “Multiline Insurance & Brokers” companies are owned by institutional investors. 1.5% of Hartford Financial Services Group, Inc. (The) shares are owned by insiders. Comparatively, 15.5% of shares of all “Multiline Insurance & Brokers” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Hartford Financial Services Group, Inc. (The) and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hartford Financial Services Group, Inc. (The) 0 5 6 0 2.55
Hartford Financial Services Group, Inc. (The) Competitors 112 789 831 21 2.43

Hartford Financial Services Group, Inc. (The) presently has a consensus price target of $56.60, indicating a potential upside of 1.95%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 3.89%. Given Hartford Financial Services Group, Inc. (The)’s stronger consensus rating and higher possible upside, analysts plainly believe Hartford Financial Services Group, Inc. (The) is more favorable than its peers.

Dividends

Hartford Financial Services Group, Inc. (The) pays an annual dividend of $0.92 per share and has a dividend yield of 1.7%. Hartford Financial Services Group, Inc. (The) pays out 70.2% of its earnings in the form of a dividend. As a group, “Multiline Insurance & Brokers” companies pay a dividend yield of 2.1% and pay out 45.6% of their earnings in the form of a dividend. Hartford Financial Services Group, Inc. (The) has increased its dividend for 4 consecutive years. Hartford Financial Services Group, Inc. (The) lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Hartford Financial Services Group, Inc. (The) $18.30 billion $896.00 million 42.38
Hartford Financial Services Group, Inc. (The) Competitors $11.13 billion $534.17 million 157.33

Hartford Financial Services Group, Inc. (The) has higher revenue and earnings than its peers. Hartford Financial Services Group, Inc. (The) is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Hartford Financial Services Group, Inc. (The) peers beat Hartford Financial Services Group, Inc. (The) on 9 of the 15 factors compared.

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.

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