Financial Contrast: Hamilton Insurance Group (NYSE:HG) & The Hanover Insurance Group (NYSE:THG)

The Hanover Insurance Group (NYSE:THG) and Hamilton Insurance Group (NYSE:HG) are both mid-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
The Hanover Insurance Group	10.97%	21.63%	4.58%
Hamilton Insurance Group	16.83%	24.05%	6.80%

Risk and Volatility

The Hanover Insurance Group has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Hamilton Insurance Group has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.

Institutional & Insider Ownership

86.6% of The Hanover Insurance Group shares are owned by institutional investors. Comparatively, 29.2% of Hamilton Insurance Group shares are owned by institutional investors. 2.8% of The Hanover Insurance Group shares are owned by insiders. Comparatively, 3.0% of Hamilton Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Hanover Insurance Group	$6.59 billion	1.30	$662.50 million	$20.91	11.93
Hamilton Insurance Group	$2.91 billion	1.31	$576.67 million	$5.23	7.36

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

Analyst Ratings

This is a summary of recent ratings and price targets for The Hanover Insurance Group and Hamilton Insurance Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hanover Insurance Group	0	5	3	2	2.70
Hamilton Insurance Group	0	3	4	2	2.89

The Hanover Insurance Group currently has a consensus price target of $236.62, indicating a potential downside of 5.17%. Hamilton Insurance Group has a consensus price target of $36.62, indicating a potential downside of 4.84%. Given Hamilton Insurance Group’s stronger consensus rating and higher possible upside, analysts plainly believe Hamilton Insurance Group is more favorable than The Hanover Insurance Group.

Summary

Hamilton Insurance Group beats The Hanover Insurance Group on 9 of the 14 factors compared between the two stocks.

About The Hanover Insurance Group

The Hanover Insurance Group, Inc. is a property and casualty insurer founded in 1852 as the Hanover Fire Insurance Company. Headquartered in Worcester, Massachusetts, it provides insurance products and services primarily in the United States. The company offers personal insurance, including coverage for homes and automobiles, as well as commercial insurance for businesses. Its commercial offerings include coverage for small and midsize businesses and specialty risks. The Hanover distributes its products mainly through independent insurance agents and brokers, working with them to serve individuals, families, and businesses.

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.