Enstar Group (NASDAQ: ESGR) and Hartford Financial Services Group (NYSE:HIG) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Insider & Institutional Ownership
81.8% of Enstar Group shares are held by institutional investors. Comparatively, 91.1% of Hartford Financial Services Group shares are held by institutional investors. 9.9% of Enstar Group shares are held by insiders. Comparatively, 1.5% of Hartford Financial Services Group shares are held by 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.
This is a breakdown of current ratings and recommmendations for Enstar Group and Hartford Financial Services Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hartford Financial Services Group||0||5||6||0||2.55|
Hartford Financial Services Group has a consensus price target of $58.55, suggesting a potential upside of 8.54%. Given Hartford Financial Services Group’s higher probable upside, analysts plainly believe Hartford Financial Services Group is more favorable than Enstar Group.
Earnings & Valuation
This table compares Enstar Group and Hartford Financial Services Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enstar Group||$1.11 billion||3.82||$311.45 million||$15.92||13.67|
|Hartford Financial Services Group||$16.97 billion||1.13||-$3.13 billion||$1.69||31.92|
Enstar Group has higher earnings, but lower revenue than Hartford Financial Services Group. Enstar Group is trading at a lower price-to-earnings ratio than Hartford Financial Services Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Enstar Group has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Hartford Financial Services Group has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.
Hartford Financial Services Group pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. Enstar Group does not pay a dividend. Hartford Financial Services Group pays out 59.2% of its earnings in the form of a dividend. Hartford Financial Services Group has raised its dividend for 5 consecutive years.
This table compares Enstar Group and Hartford Financial Services Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hartford Financial Services Group||-16.79%||7.89%||0.57%|
About Enstar Group
Enstar Group Limited is an insurance group that offers capital release solutions and specialty underwriting capabilities through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia and other international locations. The Company’s segments include Non-Life Run-Off, Atrium, StarStone, and Life and Annuities. The Non-life Run-off segment comprises the operations of its subsidiaries that are running off their property and casualty and other non-life lines of business. The Atrium segment underwrites specialist marine, energy, aerospace, non-marine and liability classes. The StarStone segment offers a range of property, casualty and specialty insurance products. The Life and Annuities Segment consists of the operations managing the Company’s closed-block of life and annuity business, and its life settlements business.
About Hartford Financial Services Group
The Hartford Financial Services Group, Inc. is a holding company for insurance and financial services subsidiaries. The Company’s segments include Commercial Lines, which provides workers’ compensation, property, automobile, marine, livestock, liability and umbrella coverages primarily throughout the United States; Personal Lines, which provides automobile, homeowners and personal umbrella coverages to individuals across the United States; Group Benefits, which provides group life, accident and disability coverage, and other products and services; Property & Casualty Other Operations, which includes certain property and casualty operations; Mutual Funds, which provides investment management, administration, product distribution and related services to investors; Talcott Resolution, which consists of the run-off of the Company’s the United States individual and institutional annuity, and Private Placement Life Insurance (PPLI) businesses, and Corporate.
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