Reviewing Unum Group (NYSE:UNM) and The Hartford Insurance Group (NYSE:HIG)

The Hartford Insurance Group (NYSE:HIG) and Unum Group (NYSE:UNM) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Volatility & Risk

The Hartford Insurance Group has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Unum Group has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500.

Insider & Institutional Ownership

93.4% of The Hartford Insurance Group shares are owned by institutional investors. Comparatively, 86.6% of Unum Group shares are owned by institutional investors. 1.3% of The Hartford Insurance Group shares are owned by company insiders. Comparatively, 1.0% of Unum Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
The Hartford Insurance Group	15.85%	20.93%	4.52%
Unum Group	1.94%	12.57%	2.18%

Valuation & Earnings

This table compares The Hartford Insurance Group and Unum Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Hartford Insurance Group	$28.37 billion	1.28	$3.84 billion	$16.52	8.22
Unum Group	$12.41 billion	1.02	$738.50 million	$1.41	57.67

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

Dividends

The Hartford Insurance Group pays an annual dividend of $2.40 per share and has a dividend yield of 1.8%. Unum Group pays an annual dividend of $2.02 per share and has a dividend yield of 2.5%. The Hartford Insurance Group pays out 14.5% of its earnings in the form of a dividend. Unum Group pays out 143.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The Hartford Insurance Group has increased its dividend for 12 consecutive years and Unum Group has increased its dividend for 16 consecutive years. Unum Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for The Hartford Insurance Group and Unum Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hartford Insurance Group	0	13	4	1	2.33
Unum Group	0	6	8	0	2.57

The Hartford Insurance Group presently has a consensus price target of $143.50, indicating a potential upside of 5.67%. Unum Group has a consensus price target of $95.67, indicating a potential upside of 17.66%. Given Unum Group’s stronger consensus rating and higher possible upside, analysts clearly believe Unum Group is more favorable than The Hartford Insurance Group.

Summary

The Hartford Insurance Group beats Unum Group on 12 of the 18 factors compared between the two stocks.

About The Hartford Insurance Group

The Hartford Financial Services Group, Inc., known as The Hartford, is a U.S.-based insurance company founded in 1810 and headquartered in Hartford, Connecticut. It provides property and casualty insurance and employee benefits to businesses, organizations and individuals. Its commercial insurance offerings include coverage such as workers’ compensation, general liability, commercial auto and property insurance. The company also provides group benefits, including life, disability and leave-management products, along with personal auto and homeowners insurance, which it offers through arrangements including its relationship with AARP.

About Unum Group

Unum Group is an insurance holding company that provides employee benefits and related services, primarily to employers and their workers. Its offerings include group disability and life insurance, accident and critical illness coverage, and services that help employers manage employee leave and workplace absence. Through its Unum and Colonial Life businesses, the company also provides voluntary benefits that employees can elect through their workplaces. In the United Kingdom, Unum offers workplace benefits including income protection, life insurance and critical illness coverage.