Heritage Insurance (NYSE: HRTG) and White Mountains Insurance Group (NYSE:WTM) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.

Dividends

Heritage Insurance pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. White Mountains Insurance Group pays an annual dividend of $1.00 per share and has a dividend yield of 0.1%. Heritage Insurance pays out 2,402.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. White Mountains Insurance Group pays out 0.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Heritage Insurance and White Mountains Insurance Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heritage Insurance 0 0 3 0 3.00
White Mountains Insurance Group 0 0 0 0 N/A

Heritage Insurance currently has a consensus price target of $19.33, indicating a potential upside of 6.64%. Given Heritage Insurance’s higher probable upside, analysts clearly believe Heritage Insurance is more favorable than White Mountains Insurance Group.

Profitability

This table compares Heritage Insurance and White Mountains Insurance Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heritage Insurance 0.27% 0.31% 0.09%
White Mountains Insurance Group 69.96% 1.32% 0.82%

Valuation & Earnings

This table compares Heritage Insurance and White Mountains 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
Heritage Insurance $438.96 million 1.00 $33.86 million $0.01 1,814.81
White Mountains Insurance Group $1.36 billion 2.30 $412.50 million $134.40 6.21

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

Risk & Volatility

Heritage Insurance has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, White Mountains Insurance Group has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Insider & Institutional Ownership

81.3% of Heritage Insurance shares are owned by institutional investors. Comparatively, 81.9% of White Mountains Insurance Group shares are owned by institutional investors. 16.1% of Heritage Insurance shares are owned by company insiders. Comparatively, 5.1% of White Mountains Insurance Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

White Mountains Insurance Group beats Heritage Insurance on 9 of the 15 factors compared between the two stocks.

Heritage Insurance Company Profile

Heritage Insurance Holdings, Inc. (Heritage Insurance) is a property and casualty insurance holding company. The Company provides personal and commercial residential insurance. Through its subsidiary, Heritage Property & Casualty Insurance Company (Heritage P&C), it provides personal residential insurance for single-family homeowners and condominium owners, rental property insurance and commercial residential insurance in the state of Florida and North Carolina. The Company is vertically integrated and controls or manages all aspects of insurance underwriting, customer service, actuarial analysis, distribution and claims processing and adjusting. The Company’s primary products are personal and commercial residential insurance, which it offers only in Florida. As of December 31, 2016, it marketed and wrote personal lines voluntary policies through a network of approximately 1,900 independent agents. It had 150,998 voluntary personal residential policies as of December 31, 2016.

White Mountains Insurance Group Company Profile

White Mountains Insurance Group, Ltd. is a holding company. The Company’s principal businesses are conducted through its insurance subsidiaries and other affiliates. Its segments include HG Global/BAM and Other Operations. The HG Global/BAM segment consists of the operations of HG Global Ltd. (HG Global) and Build America Mutual Assurance Company (BAM). The Other Operations segment consists of the Company and its intermediate holding companies, its investment management subsidiary, White Mountains Advisors LLC, and certain consolidated and unconsolidated private capital investments.

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