Contrasting MBIA (NYSE:MBI) and Hamilton Insurance Group (NYSE:HG)

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

Earnings & Valuation

This table compares MBIA and Hamilton Insurance Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MBIA	$89.00 million	4.31	-$444.00 million	($3.64)	-2.09
Hamilton Insurance Group	$2.80 billion	0.95	$400.43 million	$4.20	6.42

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MBIA	1	0	1	0	2.00
Hamilton Insurance Group	0	2	7	1	2.90

MBIA currently has a consensus price target of $8.50, suggesting a potential upside of 11.90%. Hamilton Insurance Group has a consensus price target of $28.63, suggesting a potential upside of 6.18%. Given MBIA’s higher probable upside, analysts plainly believe MBIA is more favorable than Hamilton Insurance Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MBIA	-218.45%	N/A	-1.75%
Hamilton Insurance Group	15.95%	15.07%	4.46%

Institutional & Insider Ownership

61.0% of MBIA shares are held by institutional investors. Comparatively, 29.2% of Hamilton Insurance Group shares are held by institutional investors. 12.6% of MBIA shares are held by company insiders. Comparatively, 17.5% of Hamilton Insurance Group shares are held by company 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.

Volatility & Risk

MBIA has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, Hamilton Insurance Group has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Summary

Hamilton 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 Hamilton Insurance Group

Hamilton Insurance Group, Ltd., through its subsidiaries, provides underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company operates Hamilton Global Specialty, Hamilton Select, and Hamilton Re underwriting platforms. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property reinsurance and insurance; and specialty reinsurance solutions, including accident and health, aviation and space, crisis management, mortgage, financial lines, marine and energy, and multiline specialty. In addition, it offers accident and health, cyber, energy, environmental, financial lines, fine art and specie, kidnap and ransom, mergers and acquisitions, marine and energy liability, political risk and violence, professional liability, property binders, property direct and facultative, professional lines, space, upstream energy, excess casualty, war and terrorism, allied medical, management liability, medical professionals, general liability, products liability and contractors, and small business casualty insurance plans, as well as surety and treaty reinsurance products. The company was incorporated in 2013 and is headquartered in Pembroke, Bermuda.