The Hanover Insurance Group (NYSE:THG) versus Huize (NASDAQ:HUIZ) Critical Comparison

Huize (NASDAQ:HUIZ) and The Hanover Insurance Group (NYSE:THG) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Huize	N/A	N/A	N/A
The Hanover Insurance Group	11.17%	21.72%	4.61%

Volatility and Risk

Huize has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, The Hanover Insurance Group has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.

Earnings and Valuation

This table compares Huize and The Hanover Insurance Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huize	$226.26 million	0.06	$580,000.00	$0.03	43.00
The Hanover Insurance Group	$6.73 billion	1.14	$662.50 million	$20.95	10.50

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

Insider & Institutional Ownership

86.6% of The Hanover Insurance Group shares are held by institutional investors. 30.4% of Huize shares are held by company insiders. Comparatively, 2.8% of The Hanover Insurance Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Huize and The Hanover Insurance Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huize	1	0	0	0	1.00
The Hanover Insurance Group	0	5	3	2	2.70

The Hanover Insurance Group has a consensus price target of $225.71, suggesting a potential upside of 2.58%. Given The Hanover Insurance Group’s stronger consensus rating and higher possible upside, analysts clearly believe The Hanover Insurance Group is more favorable than Huize.

Summary

The Hanover Insurance Group beats Huize on 12 of the 15 factors compared between the two stocks.

About Huize

Huize Holding Limited, together with its subsidiaries, offers online insurance product and service platform through various internet channels in the People's Republic of China. The company provides life and health insurance products, such as critical illness, illness and disease, annuity, and term and whole life insurance products; and property and casualty insurance products, including travel, individual casualty, and corporate liability insurance products. It also offers offline insurance intermediary and brokerage services. The company also provides digital and technology development services; investment, technology development, internet information, management, and financial consulting services; business management and catering services; and insurance agency services. Huize Holding Limited was founded in 2006 and is headquartered in Shenzhen, China.

About The Hanover Insurance Group

The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States. The company operates through four segments: Core Commercial, Specialty, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, workers' compensation, and other commercial lines coverage. The Specialty segment provides professional and executive Lines, marine, and surety and other, as well as specialty property and casualty, such as program business, specialty industrial business, excess and surplus business, and specialty general liability coverage. The Personal Lines segment offers personal automobile and homeowner's coverages, as well as other personal coverages, such as personal umbrella, inland marine, fire, personal watercraft, personal cyber, and other miscellaneous coverages. The Other segment markets investment advisory services to institutions, insurance companies, pension funds, and other organizations. The Hanover Insurance Group, Inc. markets its products and services through independent agents and brokers. The company was formerly known as Allmerica Financial Corp. and changed its name to The Hanover Insurance Group, Inc. in December 2005. The Hanover Insurance Group, Inc. was founded in 1852 and is headquartered in Worcester, Massachusetts.