Contrasting The Hartford Insurance Group (NYSE:HIG) & MBIA (NYSE:MBI)

MBIA (NYSE:MBI) and The Hartford Insurance Group (NYSE:HIG) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Earnings and Valuation

This table compares MBIA and The Hartford Insurance Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MBIA	$80.00 million	2.80	-$177.00 million	($2.89)	-1.52
The Hartford Insurance Group	$28.37 billion	1.29	$3.84 billion	$15.47	8.73

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

Insider & Institutional Ownership

61.0% of MBIA shares are owned by institutional investors. Comparatively, 93.4% of The Hartford Insurance Group shares are owned by institutional investors. 11.3% of MBIA shares are owned by company insiders. Comparatively, 1.3% of The Hartford Insurance Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

MBIA has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, The Hartford Insurance Group has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for MBIA and The Hartford Insurance Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MBIA	1	0	1	0	2.00
The Hartford Insurance Group	0	12	5	1	2.39

MBIA presently has a consensus price target of $7.00, suggesting a potential upside of 59.27%. The Hartford Insurance Group has a consensus price target of $145.25, suggesting a potential upside of 7.54%. Given MBIA’s higher probable upside, equities analysts plainly believe MBIA is more favorable than The Hartford Insurance Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MBIA	-154.26%	N/A	-1.69%
The Hartford Insurance Group	15.00%	21.66%	4.68%

Summary

The Hartford Insurance Group beats MBIA on 11 of the 15 factors compared between the two stocks.

About MBIA

MBIA Inc. provides financial guarantee insurance services to public finance markets in the United States. It operates United States (U.S.) Public Finance Insurance, and International and Structured Finance Insurance segments. The company issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of the U.S. political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, housing authorities, and other similar agencies and obligations issued by private entities. It also insures the non-U.S. public finance and global structured finance, including asset-backed obligations; and sovereign-related and sub-sovereign bonds, and privately issued bonds used for the financing for utilities, toll roads, bridges, public transportation facilities, and other types of infrastructure projects, as well as offers third-party reinsurance services. MBIA Inc. was founded in 1973 and is headquartered in Purchase, New York.

About The Hartford Insurance Group

The Hartford Financial Services Group, Inc., together with its subsidiaries, provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Its Commercial Lines segment offers insurance coverages, including workers' compensation, property, automobile, general and professional liability, package business, umbrella, fidelity and surety, marine, livestock, accident, health, and reinsurance through regional offices, branches, sales and policyholder service centers, independent retail agents and brokers, wholesale agents, and reinsurance brokers. The company's Personal Lines segment provides automobile, homeowners, and personal umbrella coverages through direct-to-consumer channels and independent agents. Its Property & Casualty Other Operations segment offers coverage for asbestos and environmental exposures. The company's Group Benefits segment provides group life, disability, and other group coverages to members of employer groups, associations, and affinity groups through direct insurance policies; reinsurance to other insurance companies; employer paid and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and leave management solution. This segment also distributes its group insurance products and services through brokers, consultants, third-party administrators, trade associations, and private exchanges. Its Hartford Funds segment offers managed mutual funds across various asset classes; and exchange-traded funds through broker-dealer organizations, independent financial advisers, defined contribution plans, financial consultants, bank trust groups, and registered investment advisers, as well as investment management, distribution, and administrative services, such as product design, implementation, and oversight. The company was founded in 1810 and is headquartered in Hartford, Connecticut.