Infinity Property and Casualty (NASDAQ:IPCC) and Hartford Financial Services Group (NYSE:HIG) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.
Valuation & Earnings
This table compares Infinity Property and Casualty and Hartford Financial Services Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Infinity Property and Casualty||$1.52 billion||1.03||$45.38 million||$4.89||29.20|
|Hartford Financial Services Group||$16.97 billion||0.99||-$3.13 billion||$2.74||17.08|
Institutional and Insider Ownership
91.2% of Infinity Property and Casualty shares are held by institutional investors. Comparatively, 89.5% of Hartford Financial Services Group shares are held by institutional investors. 3.2% of Infinity Property and Casualty shares are held by company insiders. Comparatively, 1.5% of Hartford Financial Services Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
Infinity Property and Casualty has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Hartford Financial Services Group has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.
Infinity Property and Casualty pays an annual dividend of $2.32 per share and has a dividend yield of 1.6%. Hartford Financial Services Group pays an annual dividend of $1.20 per share and has a dividend yield of 2.6%. Infinity Property and Casualty pays out 47.4% of its earnings in the form of a dividend. Hartford Financial Services Group pays out 43.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Infinity Property and Casualty has raised its dividend for 10 consecutive years and Hartford Financial Services Group has raised its dividend for 5 consecutive years. Hartford Financial Services Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Infinity Property and Casualty and Hartford Financial Services Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Infinity Property and Casualty||3.58%||9.22%||2.65%|
|Hartford Financial Services Group||-12.24%||9.84%||0.76%|
This is a breakdown of recent ratings for Infinity Property and Casualty and Hartford Financial Services Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Infinity Property and Casualty||0||1||0||0||2.00|
|Hartford Financial Services Group||0||4||5||0||2.56|
Infinity Property and Casualty currently has a consensus price target of $121.00, suggesting a potential downside of 15.27%. Hartford Financial Services Group has a consensus price target of $59.00, suggesting a potential upside of 26.10%. Given Hartford Financial Services Group’s stronger consensus rating and higher possible upside, analysts plainly believe Hartford Financial Services Group is more favorable than Infinity Property and Casualty.
Infinity Property and Casualty beats Hartford Financial Services Group on 9 of the 17 factors compared between the two stocks.
Infinity Property and Casualty Company Profile
Infinity Property and Casualty Corporation, through its subsidiaries, provides personal auto insurance products in the United States. The company offers nonstandard, commercial, and classic collector auto insurance products. It also provides reinsurance products and services. The company distributes its products primarily through a network of independent agencies and brokers. Infinity Property and Casualty Corporation was founded in 2002 and is headquartered in Birmingham, Alabama.
Hartford Financial Services Group Company Profile
The Hartford Financial Services Group, Inc., through its subsidiaries, provides insurance and financial services to individual and business customers in the United States. It operates through five segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits, and Mutual Funds. The Commercial Lines segment offers workers' compensation, property, automobile, marine, livestock, liability, and umbrella insurance products, as well as customized insurance products and risk management services, including professional liability, bond, surety, and specialty casualty coverages. The Personal Lines segment provides automobile, homeowners, and personal umbrella coverages to individuals. The Property & Casualty Other Operations segment provides coverage for asbestos and environmental exposures. The Group Benefits segment provides group life, accident and 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 coverages and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and a single-company leave management solution. The Mutual Funds segment provides investment products for retail and retirement accounts, as well as exchange-traded products; and investment-management and administrative services, such as product design, implementation, and oversight. The Hartford Financial Services Group, Inc. was founded in 1810 and is headquartered in Hartford, Connecticut.
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