Head to Head Survey: The Hartford Insurance Group (NYSE:HIG) & MBIA (NYSE:MBI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
The Hartford Insurance Group	15.00%	21.66%	4.68%
MBIA	-154.26%	N/A	-1.69%

Earnings & Valuation

This table compares The Hartford Insurance Group and MBIA”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	1.25	$3.84 billion	$15.47	8.44
MBIA	$94.00 million	2.44	-$177.00 million	($2.89)	-1.56

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

Volatility and Risk

The Hartford Insurance Group has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, MBIA has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for The Hartford Insurance Group and MBIA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hartford Insurance Group	0	12	5	1	2.39
MBIA	1	0	1	0	2.00

The Hartford Insurance Group presently has a consensus price target of $145.69, suggesting a potential upside of 11.62%. MBIA has a consensus price target of $7.00, suggesting a potential upside of 55.35%. Given MBIA’s higher possible upside, analysts plainly believe MBIA is more favorable than The Hartford Insurance Group.

Insider & Institutional Ownership

93.4% of The Hartford Insurance Group shares are held by institutional investors. Comparatively, 61.0% of MBIA shares are held by institutional investors. 1.3% of The Hartford Insurance Group shares are held by insiders. Comparatively, 11.3% of MBIA shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

The Hartford Insurance Group beats MBIA on 11 of the 15 factors compared between the two stocks.

About The Hartford Insurance Group

The Hartford Financial Services Group, Inc., together with its subsidiaries, provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Its Commercial Lines segment offers insurance coverages, including workers' compensation, property, automobile, general and professional liability, package business, umbrella, fidelity and surety, marine, livestock, accident, health, and reinsurance through regional offices, branches, sales and policyholder service centers, independent retail agents and brokers, wholesale agents, and reinsurance brokers. The company's Personal Lines segment provides automobile, homeowners, and personal umbrella coverages through direct-to-consumer channels and independent agents. Its Property & Casualty Other Operations segment offers coverage for asbestos and environmental exposures. The company's Group Benefits segment provides group life, 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 and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and leave management solution. This segment also distributes its group insurance products and services through brokers, consultants, third-party administrators, trade associations, and private exchanges. Its Hartford Funds segment offers managed mutual funds across various asset classes; and exchange-traded funds through broker-dealer organizations, independent financial advisers, defined contribution plans, financial consultants, bank trust groups, and registered investment advisers, as well as investment management, distribution, and administrative services, such as product design, implementation, and oversight. The company was founded in 1810 and is headquartered in Hartford, Connecticut.

About MBIA

MBIA Inc. provides financial guarantee insurance services to public finance markets in the United States. It operates United States (U.S.) Public Finance Insurance, and International and Structured Finance Insurance segments. The company issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of the U.S. political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, housing authorities, and other similar agencies and obligations issued by private entities. It also insures the non-U.S. public finance and global structured finance, including asset-backed obligations; and sovereign-related and sub-sovereign bonds, and privately issued bonds used for the financing for utilities, toll roads, bridges, public transportation facilities, and other types of infrastructure projects, as well as offers third-party reinsurance services. MBIA Inc. was founded in 1973 and is headquartered in Purchase, New York.