Contrasting Hamilton Insurance Group (NYSE:HG) & RenaissanceRe (NYSE:RNR)

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

Volatility and Risk

Hamilton Insurance Group has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, RenaissanceRe has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Hamilton Insurance Group and RenaissanceRe, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hamilton Insurance Group	0	3	4	2	2.89
RenaissanceRe	1	12	5	0	2.22

Hamilton Insurance Group presently has a consensus price target of $36.62, indicating a potential downside of 4.81%. RenaissanceRe has a consensus price target of $343.69, indicating a potential downside of 3.28%. Given RenaissanceRe’s higher probable upside, analysts plainly believe RenaissanceRe is more favorable than Hamilton Insurance Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hamilton Insurance Group	16.83%	24.05%	6.80%
RenaissanceRe	16.25%	21.13%	4.21%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hamilton Insurance Group	$2.91 billion	1.31	$576.67 million	$5.23	7.36
RenaissanceRe	$12.85 billion	1.12	$2.68 billion	$34.78	10.22

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

Insider and Institutional Ownership

29.2% of Hamilton Insurance Group shares are held by institutional investors. Comparatively, 100.0% of RenaissanceRe shares are held by institutional investors. 3.0% of Hamilton Insurance Group shares are held by insiders. Comparatively, 2.3% of RenaissanceRe shares are held by 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.

Summary

Hamilton Insurance Group beats RenaissanceRe on 8 of the 15 factors compared between the two stocks.

About Hamilton Insurance Group

Hamilton Insurance Group is a global specialty insurance and reinsurance company headquartered in Bermuda. Founded in 2013, it operates through businesses in Bermuda, the United States and the United Kingdom. The company underwrites a range of property, casualty and specialty risks, offering insurance and reinsurance products to businesses and other clients. Its operations include Hamilton Re in Bermuda, Hamilton Global Specialty in London and Hamilton Select in the United States. Pina Albo became Hamilton Insurance Group’s chief executive officer in 2023.

About RenaissanceRe

RenaissanceRe Holdings Ltd. is a Bermuda-based provider of reinsurance and insurance, serving clients around the world. The company focuses on helping insurers and other businesses manage risks that can be difficult to predict or absorb. Its main offerings include property catastrophe reinsurance, which helps protect insurers against losses from events such as hurricanes and earthquakes, as well as casualty and specialty reinsurance and insurance. RenaissanceRe also manages capital on behalf of third-party investors and uses risk modeling to assess and manage its exposure.