Critical Review: Hamilton Insurance Group (NYSE:HG) & Waterdrop (NYSE:WDH)

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

Insider and Institutional Ownership

2.0% of Waterdrop shares are held by institutional investors. Comparatively, 29.2% of Hamilton Insurance Group shares are held by institutional investors. 24.6% of Waterdrop shares are held by company insiders. Comparatively, 17.5% of Hamilton Insurance Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Waterdrop	15.58%	9.99%	7.57%
Hamilton Insurance Group	15.95%	15.07%	4.46%

Earnings and Valuation

This table compares Waterdrop and Hamilton Insurance Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waterdrop	$379.74 million	1.81	$50.35 million	$0.19	9.97
Hamilton Insurance Group	$2.33 billion	1.15	$400.43 million	$4.20	6.49

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Waterdrop and Hamilton Insurance Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waterdrop	0	2	0	0	2.00
Hamilton Insurance Group	0	2	7	1	2.90

Waterdrop currently has a consensus price target of $2.00, suggesting a potential upside of 5.54%. Hamilton Insurance Group has a consensus price target of $29.13, suggesting a potential upside of 6.82%. Given Hamilton Insurance Group’s stronger consensus rating and higher probable upside, analysts plainly believe Hamilton Insurance Group is more favorable than Waterdrop.

Volatility and Risk

Waterdrop has a beta of -0.26, indicating that its stock price is 126% less volatile than the S&P 500. Comparatively, Hamilton Insurance Group has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Summary

Hamilton Insurance Group beats Waterdrop on 11 of the 15 factors compared between the two stocks.

About Waterdrop

Waterdrop Inc., through its subsidiaries, provides online insurance brokerage services to match and connect users with related insurance products underwritten by insurance companies in the People's Republic of China. The company offers short-term health and long-term health and life insurance products and services. It also operates a medical crowdfunding platform. Waterdrop Inc. was founded in 2016 and is headquartered in Beijing, the People's Republic of China.

About Hamilton Insurance Group

Hamilton Insurance Group, Ltd., through its subsidiaries, provides underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company operates Hamilton Global Specialty, Hamilton Select, and Hamilton Re underwriting platforms. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property reinsurance and insurance; and specialty reinsurance solutions, including accident and health, aviation and space, crisis management, mortgage, financial lines, marine and energy, and multiline specialty. In addition, it offers accident and health, cyber, energy, environmental, financial lines, fine art and specie, kidnap and ransom, mergers and acquisitions, marine and energy liability, political risk and violence, professional liability, property binders, property direct and facultative, professional lines, space, upstream energy, excess casualty, war and terrorism, allied medical, management liability, medical professionals, general liability, products liability and contractors, and small business casualty insurance plans, as well as surety and treaty reinsurance products. The company was incorporated in 2013 and is headquartered in Pembroke, Bermuda.