Hanover Insurance Group (NYSE:THG) and Infinity Property and Casualty (NASDAQ:IPCC) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Dividends

Hanover Insurance Group pays an annual dividend of $2.40 per share and has a dividend yield of 2.1%. Infinity Property and Casualty pays an annual dividend of $2.32 per share and has a dividend yield of 1.6%. Hanover Insurance Group pays out 35.3% of its earnings in the form of a dividend. Hanover Insurance Group has increased its dividend for 7 consecutive years and Infinity Property and Casualty has increased its dividend for 11 consecutive years.

Earnings & Valuation

This table compares Hanover Insurance Group and Infinity Property and Casualty’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hanover Insurance Group $4.49 billion 1.05 $391.00 million $6.79 17.11
Infinity Property and Casualty N/A N/A N/A N/A N/A

Hanover Insurance Group has higher revenue and earnings than Infinity Property and Casualty.

Analyst Recommendations

This is a summary of current ratings for Hanover Insurance Group and Infinity Property and Casualty, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hanover Insurance Group 0 0 4 0 3.00
Infinity Property and Casualty 0 0 0 0 N/A

Hanover Insurance Group presently has a consensus target price of $130.57, suggesting a potential upside of 12.37%. Given Hanover Insurance Group’s higher possible upside, research analysts plainly believe Hanover Insurance Group is more favorable than Infinity Property and Casualty.

Profitability

This table compares Hanover Insurance Group and Infinity Property and Casualty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hanover Insurance Group 7.88% 11.14% 2.24%
Infinity Property and Casualty N/A N/A N/A

Insider & Institutional Ownership

84.8% of Hanover Insurance Group shares are held by institutional investors. Comparatively, 91.2% of Infinity Property and Casualty shares are held by institutional investors. 1.3% of Hanover Insurance Group shares are held by insiders. Comparatively, 3.2% of Infinity Property and Casualty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Hanover Insurance Group beats Infinity Property and Casualty on 7 of the 11 factors compared between the two stocks.

About Hanover Insurance Group

The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States. The company operates in three segments: Commercial Lines, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, workers' compensation, umbrella, healthcare, mono-line general liability, and miscellaneous commercial property insurance products; and other commercial coverages, including inland marine, specialty program business, management and professional liability, surety, and specialty property. The Personal Lines segment provides personal automobile and homeowner's coverages, as well as other personal coverages, such as personal inland marine, umbrella, fire, personal watercraft, earthquake, and other miscellaneous coverages. The Other segment offers investment management and advisory services to institutions, pension funds, and other organizations. The company markets its products and services through independent agents and brokers. The Hanover Insurance Group, Inc. was founded in 1852 and is headquartered in Worcester, Massachusetts.

About Infinity Property and Casualty

Infinity Property and Casualty Corporation, through its subsidiaries, provides personal auto insurance products in the United States. The company offers nonstandard, commercial, and classic collector auto insurance products. It also provides reinsurance products and services. The company distributes its products primarily through a network of independent agencies and brokers. Infinity Property and Casualty Corporation was founded in 2002 and is headquartered in Birmingham, Alabama.

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