The Hanover Insurance Group (THG) & Its Rivals Critical Survey

The Hanover Insurance Group (NYSE: THG) is one of 87 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it compare to its rivals? We will compare The Hanover Insurance Group to related businesses based on the strength of its analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for The Hanover Insurance Group and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Hanover Insurance Group 0 1 0 0 2.00
The Hanover Insurance Group Competitors 629 2324 2198 45 2.32

The Hanover Insurance Group currently has a consensus price target of $91.00, suggesting a potential downside of 14.89%. As a group, “Property & Casualty Insurance” companies have a potential upside of 6.24%. Given The Hanover Insurance Group’s rivals stronger consensus rating and higher possible upside, analysts plainly believe The Hanover Insurance Group has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

86.0% of The Hanover Insurance Group shares are owned by institutional investors. Comparatively, 59.7% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 1.1% of The Hanover Insurance Group shares are owned by company insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

The Hanover Insurance Group has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, The Hanover Insurance Group’s rivals have a beta of 0.90, indicating that their average share price is 10% less volatile than the S&P 500.

Earnings & Valuation

This table compares The Hanover Insurance Group and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
The Hanover Insurance Group $4.95 billion $155.10 million 37.91
The Hanover Insurance Group Competitors $11.51 billion $1.16 billion 212.79

The Hanover Insurance Group’s rivals have higher revenue and earnings than The Hanover Insurance Group. The Hanover Insurance Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

The Hanover Insurance Group pays an annual dividend of $2.00 per share and has a dividend yield of 1.9%. The Hanover Insurance Group pays out 70.9% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.3% and pay out 13.3% of their earnings in the form of a dividend. The Hanover Insurance Group has raised its dividend for 5 consecutive years.

Profitability

This table compares The Hanover Insurance Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Hanover Insurance Group 2.37% 3.35% 0.67%
The Hanover Insurance Group Competitors 9.02% 3.34% 2.19%

Summary

The Hanover Insurance Group rivals beat The Hanover Insurance Group on 11 of the 15 factors compared.

The Hanover Insurance Group Company Profile

The Hanover Insurance Group, Inc. is a holding company. The Company is engaged in providing property and casualty insurance products and services. The Company has four segments: Commercial Lines, Personal Lines, Chaucer and Other. It markets its domestic products and services through independent agents and brokers in the United States, and conducts business internationally through a subsidiary, Chaucer Holdings Limited, which operates through the Society and Corporation of Lloyd’s (Lloyd’s). Its Commercial Lines product suite provides agents and customers with products designed for small, middle and specialized markets. Its Personal Lines coverages include other personal lines, which consist of umbrella and fire, among others. The Chaucer segment consists of international business written through Lloyd’s, including marine and aviation, and property. The Other segment consists of Opus Investment Management, Inc. (Opus), which provides investment advisory services to affiliates.

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