Analyzing Horace Mann Educators (HMN) & The Competition

Horace Mann Educators (NYSE:HMN) is one of 311 public companies in the “Insurance” industry, but how does it contrast to its competitors? We will compare Horace Mann Educators to similar businesses based on the strength of its institutional ownership, dividends, profitability, analyst recommendations, valuation, risk and earnings.

Volatility and Risk

Horace Mann Educators has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500. Comparatively, Horace Mann Educators’ competitors have a beta of -1.59, meaning that their average stock price is 259% less volatile than the S&P 500.

Profitability

This table compares Horace Mann Educators and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Horace Mann Educators	10.16%	16.07%	1.54%
Horace Mann Educators Competitors	9.15%	-9.84%	4.10%

Insider and Institutional Ownership

99.3% of Horace Mann Educators shares are owned by institutional investors. Comparatively, 55.9% of shares of all “Insurance” companies are owned by institutional investors. 3.6% of Horace Mann Educators shares are owned by insiders. Comparatively, 13.6% of shares of all “Insurance” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Horace Mann Educators and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Horace Mann Educators	$1.70 billion	$162.10 million	12.34
Horace Mann Educators Competitors	$15.47 billion	$1.70 billion	34.39

Horace Mann Educators’ competitors have higher revenue and earnings than Horace Mann Educators. Horace Mann Educators is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Horace Mann Educators pays an annual dividend of $1.44 per share and has a dividend yield of 2.7%. Horace Mann Educators pays out 33.6% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 2.9% and pay out 31.2% of their earnings in the form of a dividend. Horace Mann Educators has raised its dividend for 17 consecutive years. Horace Mann Educators lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of current recommendations for Horace Mann Educators and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Horace Mann Educators	0	1	1	1	3.00
Horace Mann Educators Competitors	3336	15674	16522	741	2.40

Horace Mann Educators presently has a consensus target price of $59.00, indicating a potential upside of 11.44%. As a group, “Insurance” companies have a potential upside of 5.97%. Given Horace Mann Educators’ stronger consensus rating and higher probable upside, analysts clearly believe Horace Mann Educators is more favorable than its competitors.

Summary

Horace Mann Educators competitors beat Horace Mann Educators on 8 of the 15 factors compared.

About Horace Mann Educators

Horace Mann Educators Corporation, together with its subsidiaries, operates as an insurance holding company in the United States. The company operates through Property & Casualty, Life & Retirement, and Supplemental & Group Benefits segments. Its Property & Casualty segment offers insurance products, including private passenger auto insurance, residential home insurance, and personal umbrella insurance; and provides auto coverages including liability and collision, and property coverage for homeowners and renters. The Life & Retirement segment markets tax-qualified fixed, fixed indexed, and variable annuities; and internal revenue code for educator, which allows public school employees and employees of other tax-exempt organizations, such as not-for-profit private schools, to utilize pretax income to make periodic contributions to a qualified retirement plan. The Supplemental & Group Benefits segment offers employer-sponsored products including accident, critical illness, limited-benefit fixed indemnity insurance, term life, and short-term and long-term disability, as well as worksite direct products, such as supplemental heart, cancer, disability, and accident coverage. The company was founded in 1945 and is headquartered in Springfield, Illinois.