Horace Mann Educators (HMN) vs. W. R. Berkley (WRB) Financial Comparison

Horace Mann Educators (NYSE: HMN) and W. R. Berkley (NYSE:WRB) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Institutional & Insider Ownership

99.0% of Horace Mann Educators shares are owned by institutional investors. Comparatively, 71.8% of W. R. Berkley shares are owned by institutional investors. 2.2% of Horace Mann Educators shares are owned by insiders. Comparatively, 22.2% of W. R. Berkley shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Horace Mann Educators and W. R. Berkley, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Horace Mann Educators 0 1 0 0 2.00
W. R. Berkley 3 6 0 0 1.67

Horace Mann Educators presently has a consensus target price of $43.00, indicating a potential downside of 5.70%. W. R. Berkley has a consensus target price of $69.75, indicating a potential downside of 5.40%. Given W. R. Berkley’s higher possible upside, analysts clearly believe W. R. Berkley is more favorable than Horace Mann Educators.

Volatility & Risk

Horace Mann Educators has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, W. R. Berkley has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Profitability

This table compares Horace Mann Educators and W. R. Berkley’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Horace Mann Educators 14.77% 5.53% 0.71%
W. R. Berkley 7.68% 6.53% 1.46%

Dividends

Horace Mann Educators pays an annual dividend of $1.14 per share and has a dividend yield of 2.5%. W. R. Berkley pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. Horace Mann Educators pays out 65.5% of its earnings in the form of a dividend. W. R. Berkley pays out 24.4% 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. Horace Mann Educators has raised its dividend for 9 consecutive years and W. R. Berkley has raised its dividend for 8 consecutive years. Horace Mann Educators is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Horace Mann Educators and W. R. Berkley’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Horace Mann Educators $1.17 billion 1.59 $169.45 million $1.74 26.21
W. R. Berkley $7.68 billion 1.17 $549.09 million $2.46 29.97

W. R. Berkley has higher revenue and earnings than Horace Mann Educators. Horace Mann Educators is trading at a lower price-to-earnings ratio than W. R. Berkley, indicating that it is currently the more affordable of the two stocks.

Summary

W. R. Berkley beats Horace Mann Educators on 9 of the 16 factors compared between the two stocks.

About Horace Mann Educators

Horace Mann Educators Corporation, through its subsidiaries, operates as a multiline insurance company in the United States. The Company operates Property and Casualty Insurance, Annuity Products, and Life Insurance segments. It underwrites and markets personal lines of property and casualty insurance, including personal lines automobile and property insurance products; retirement products, such as tax-qualified annuities; and life insurance products. The company markets its products through its sales force of full-time exclusive distributors and independent agents to K-12 teachers, administrators, and other employees of public schools and their families. Horace Mann Educators Corporation was founded in 1945 and is headquartered in Springfield, Illinois.

About W. R. Berkley

W. R. Berkley Corporation, an insurance holding company, operates as a commercial lines writer in the United States and internationally. It operates through two segments, Insurance and Reinsurance. The Insurance segment underwrites commercial insurance business, including premises operations, commercial automobile, property, products liability, and professional liability lines. It also provides workers' compensation, property casualty, general liability, and excess and umbrella coverage insurance products, as well as coverages for technology, ambulatory surgery centers, chiropractors, and concierge physicians; accident and health insurance and reinsurance products; insurance for commercial risks; pollution liability and protective coverages to contractors and owners; and liquor liability and inland marine coverage for small to medium-sized insureds. In addition, this segment offers aviation insurance products; directors and officers, and surety risk products, as well as products for life sciences and travel industries; coverage for excess liability, construction wrap-ups, and completed operations; cyber risk solutions; casualty, group life, and crime-related insurance products; personal lines insurance solutions, including home, condo/co-op, and collectibles; automobile, law enforcement, public officials and educator's legal, and employment practices liability, as well as incidental medical insurance products; and at-risk and alternative risk insurance program management services. The Reinsurance segment provides other insurance companies and self-insureds with assistance in managing their net risk through reinsurance on a portfolio basis through treaty reinsurance or on an individual basis through facultative reinsurance. W. R. Berkley Corporation was founded in 1967 and is based in Greenwich, Connecticut.

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