Hartford Financial Services Group (NYSE:HIG) and Heritage Insurance (NYSE:HRTG) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Earnings and Valuation

This table compares Hartford Financial Services Group and Heritage Insurance’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hartford Financial Services Group $16.97 billion 1.07 -$3.13 billion $2.74 18.45
Heritage Insurance $406.62 million 1.01 -$1.11 million $1.53 10.10

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

Profitability

This table compares Hartford Financial Services Group and Heritage Insurance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hartford Financial Services Group -12.24% 9.84% 0.76%
Heritage Insurance 0.79% 10.66% 2.15%

Volatility & Risk

Hartford Financial Services Group has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Heritage Insurance has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Dividends

Hartford Financial Services Group pays an annual dividend of $1.20 per share and has a dividend yield of 2.4%. Heritage Insurance pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. Hartford Financial Services Group pays out 43.8% of its earnings in the form of a dividend. Heritage Insurance pays out 15.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Hartford Financial Services Group has raised its dividend for 5 consecutive years. Hartford Financial Services Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Hartford Financial Services Group and Heritage Insurance, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hartford Financial Services Group 0 4 5 0 2.56
Heritage Insurance 0 1 4 0 2.80

Hartford Financial Services Group presently has a consensus price target of $59.20, suggesting a potential upside of 17.00%. Heritage Insurance has a consensus price target of $20.60, suggesting a potential upside of 34.11%. Given Heritage Insurance’s stronger consensus rating and higher probable upside, analysts clearly believe Heritage Insurance is more favorable than Hartford Financial Services Group.

Insider and Institutional Ownership

89.4% of Hartford Financial Services Group shares are owned by institutional investors. Comparatively, 77.2% of Heritage Insurance shares are owned by institutional investors. 1.5% of Hartford Financial Services Group shares are owned by insiders. Comparatively, 25.3% of Heritage Insurance shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Heritage Insurance beats Hartford Financial Services Group on 9 of the 17 factors compared between the two stocks.

About Hartford Financial Services Group

The Hartford Financial Services Group, Inc., through its subsidiaries, provides insurance and financial services to individual and business customers in the United States. It operates through five segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits, and Mutual Funds. The Commercial Lines segment offers workers' compensation, property, automobile, marine, livestock, liability, and umbrella insurance products, as well as customized insurance products and risk management services, including professional liability, bond, surety, and specialty casualty coverages. The Personal Lines segment provides automobile, homeowners, and personal umbrella coverages to individuals. The Property & Casualty Other Operations segment provides coverage for asbestos and environmental exposures. The Group Benefits segment provides group life, accident and 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 coverages and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and a single-company leave management solution. The Mutual Funds segment provides investment products for retail and retirement accounts, as well as exchange-traded products; and investment-management and administrative services, such as product design, implementation, and oversight. The Hartford Financial Services Group, Inc. was founded in 1810 and is headquartered in Hartford, Connecticut.

About Heritage Insurance

Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products. The company offers personal residential property insurance for single-family homeowners and condominium owners; rental property insurance; and commercial residential insurance, as well as residential wind-only property insurance in Alabama, Connecticut, Florida, Georgia, Hawaii, Massachusetts, New York, New Jersey, North Carolina, Rhode Island, and South Carolina. As of December 31, 2017, it had approximately 521,350 personal residential policies and 3,100 commercial residential policies. The company markets and writes its voluntary personal line policies through a network of retail independent agents, wholesale agents, and a partnership with a direct agency, as well as indirectly to approximately 1,500 retail locations through 8 wholesale agency relationships. It also provides restoration, and emergency and recovery services; and property management, retail agency, and reinsurance services. The company was founded in 2012 and is headquartered in Clearwater, Florida.

Receive News & Ratings for Hartford Financial Services Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hartford Financial Services Group and related companies with MarketBeat.com's FREE daily email newsletter.