Comparing Accelerant (NYSE:ARX) and The Hartford Insurance Group (NYSE:HIG)

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

Valuation & Earnings

This table compares The Hartford Insurance Group and Accelerant”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Hartford Insurance Group	$28.88 billion	1.27	$3.84 billion	$15.47	8.77
Accelerant	$1.14 billion	3.77	-$1.35 billion	($6.65)	-2.98

The Hartford Insurance Group has higher revenue and earnings than Accelerant. Accelerant 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.

Risk & Volatility

The Hartford Insurance Group has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Accelerant has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for The Hartford Insurance Group and Accelerant, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hartford Insurance Group	0	11	7	0	2.39
Accelerant	1	7	4	0	2.25

The Hartford Insurance Group presently has a consensus target price of $149.67, suggesting a potential upside of 10.29%. Accelerant has a consensus target price of $18.95, suggesting a potential downside of 4.51%. Given The Hartford Insurance Group’s stronger consensus rating and higher probable upside, research analysts plainly believe The Hartford Insurance Group is more favorable than Accelerant.

Insider and Institutional Ownership

93.4% of The Hartford Insurance Group shares are held by institutional investors. 1.3% of The Hartford Insurance Group shares are held by company insiders. Comparatively, 66.6% of Accelerant shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares The Hartford Insurance Group and Accelerant’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%
Accelerant	-113.08%	42.79%	3.68%

Summary

The Hartford Insurance Group beats Accelerant on 11 of the 14 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 Accelerant

Accelerant Holdings, together with its subsidiaries, operates a data-driven risk exchange that connects selected specialty insurance underwriters with risk capital partners. It operates through Exchange Services, MGA Operations, and Underwriting segments. The Exchange Services segment consists of risk exchange, its operating platform that incorporates various technology, data ingestion, and agency operations that serve the needs of its members and risk capital partners. Its Risk capital partners write premiums directly through the Risk Exchange pay us a fixed-percentage, volume-based fee for sourcing, managing, and monitoring the business they write. The MGA Operations segment includes the fees earned by members, predominantly for originating and underwriting a portfolio of insurance policies, reduced by the expenses associated with providing services. The Underwriting segment is involved in underwriting insurance policies and assumption of reinsurance policies issued or accepted by consolidated insurance and reinsurance companies. The activities of insurance companies include property and casualty insurance, policy issuance, and reinsurance arrangements. It serves small-to-medium sized commercial clients primarily in the United States, Europe, Canada, Australia, and the United Kingdom. Accelerant Holdings was founded in 2018 and is based in Grand Cayman, Cayman Islands.