Financial Review: NN Group (OTCMKTS:NNGRY) vs. Horace Mann Educators (NYSE:HMN)

Horace Mann Educators (NYSE:HMN) and NN Group (OTCMKTS:NNGRY) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Insider and Institutional Ownership

99.3% of Horace Mann Educators shares are owned by institutional investors. Comparatively, 0.0% of NN Group shares are owned by institutional investors. 3.6% of Horace Mann Educators shares are owned 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Horace Mann Educators and NN Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Horace Mann Educators	0	0	0	3	4.00
NN Group	0	1	2	0	2.67

Horace Mann Educators currently has a consensus price target of $59.00, indicating a potential upside of 11.71%. Given Horace Mann Educators’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Horace Mann Educators is more favorable than NN Group.

Profitability

This table compares Horace Mann Educators and NN Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Horace Mann Educators	10.15%	14.08%	1.35%
NN Group	N/A	N/A	N/A

Valuation & Earnings

This table compares Horace Mann Educators and NN Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Horace Mann Educators	$1.70 billion	1.26	$162.10 million	$4.28	12.34
NN Group	$13.03 billion	1.82	$1.34 billion	N/A	N/A

NN Group has higher revenue and earnings than Horace Mann Educators.

Dividends

Horace Mann Educators pays an annual dividend of $1.44 per share and has a dividend yield of 2.7%. NN Group pays an annual dividend of $2.33 per share and has a dividend yield of 5.1%. Horace Mann Educators pays out 33.6% of its earnings in the form of a dividend. Horace Mann Educators has increased its dividend for 17 consecutive years.

Risk and Volatility

Horace Mann Educators has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, NN Group has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Summary

Horace Mann Educators beats NN Group on 9 of the 16 factors compared between the two stocks.

About Horace Mann Educators

Horace Mann Educators Corporation, together with its subsidiaries, operates as an insurance holding company in the United States. The company operates through Property & Casualty, Life & Retirement, and Supplemental & Group Benefits segments. Its Property & Casualty segment offers insurance products, including private passenger auto insurance, residential home insurance, and personal umbrella insurance; and provides auto coverages including liability and collision, and property coverage for homeowners and renters. The Life & Retirement segment markets tax-qualified fixed, fixed indexed, and variable annuities; and internal revenue code for educator, which allows public school employees and employees of other tax-exempt organizations, such as not-for-profit private schools, to utilize pretax income to make periodic contributions to a qualified retirement plan. The Supplemental & Group Benefits segment offers employer-sponsored products including accident, critical illness, limited-benefit fixed indemnity insurance, term life, and short-term and long-term disability, as well as worksite direct products, such as supplemental heart, cancer, disability, and accident coverage. The company was founded in 1945 and is headquartered in Springfield, Illinois.

About NN Group

NN Group N.V., a financial services company, provides life and non-life insurance products in the Netherlands and internationally. The company operates through Netherlands Life, Netherlands Non-life, Insurance Europe, Japan Life, Banking, and Other segments. It offers Life insurance products, such as group and individual pension products, retail life insurance, and SME life insurance products; and non-life insurance products, including motor, fire, liability, transport, travel, health, property and casualty, and disability and accident insurance products. The company also provides banking services, including mortgage loans, bank annuities, consumer savings, and retail savings and investment products; reinsurance services; and retirement products and services. It offers its products to individuals, small and medium-sized enterprises, and Corporates customers directly through tied agents, agents/ brokers, platform insurance, and direct channels. The company was formerly known as ING Insurance Topholding N.V. and changed its name to NN Group N.V. in March 2014. NN Group N.V. was founded in 1845 and is headquartered in the Hague, the Netherlands.