Cincinnati Financial (NASDAQ: CINF) and Horace Mann Educators (NYSE:HMN) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.
Volatility & Risk
Cincinnati Financial has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Horace Mann Educators has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Cincinnati Financial and Horace Mann Educators, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Horace Mann Educators||0||1||0||0||2.00|
Cincinnati Financial currently has a consensus price target of $70.00, indicating a potential downside of 1.05%. Horace Mann Educators has a consensus price target of $43.00, indicating a potential downside of 3.80%. Given Cincinnati Financial’s higher probable upside, research analysts plainly believe Cincinnati Financial is more favorable than Horace Mann Educators.
Cincinnati Financial pays an annual dividend of $2.12 per share and has a dividend yield of 3.0%. Horace Mann Educators pays an annual dividend of $1.14 per share and has a dividend yield of 2.6%. Cincinnati Financial pays out 77.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Horace Mann Educators pays out 65.5% of its earnings in the form of a dividend. Cincinnati Financial has raised its dividend for 57 consecutive years and Horace Mann Educators has raised its dividend for 9 consecutive years. Cincinnati Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Cincinnati Financial and Horace Mann Educators’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cincinnati Financial||$5.73 billion||2.03||$1.05 billion||$2.74||25.82|
|Horace Mann Educators||$1.17 billion||1.56||$169.45 million||$1.74||25.69|
Cincinnati Financial has higher revenue and earnings than Horace Mann Educators. Horace Mann Educators is trading at a lower price-to-earnings ratio than Cincinnati Financial, indicating that it is currently the more affordable of the two stocks.
This table compares Cincinnati Financial and Horace Mann Educators’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Horace Mann Educators||14.77%||5.53%||0.71%|
Insider & Institutional Ownership
63.3% of Cincinnati Financial shares are held by institutional investors. Comparatively, 98.9% of Horace Mann Educators shares are held by institutional investors. 7.1% of Cincinnati Financial shares are held by insiders. Comparatively, 2.2% of Horace Mann Educators shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Cincinnati Financial beats Horace Mann Educators on 12 of the 15 factors compared between the two stocks.
About Cincinnati Financial
Cincinnati Financial Corporation provides property casualty insurance products in the United States. The company operates in five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. The Commercial Lines Insurance segment provides coverage for commercial casualty, commercial property, commercial auto, and workers' compensation. It also offers director and officer liability insurance, contract and commercial surety bonds, and fidelity bonds; coverage for property, liability, and business interruption; and machinery and equipment coverage. The Personal Lines Insurance segment provides personal auto insurance; homeowners insurance; and dwelling fire, inland marine, personal umbrella liability, and watercraft coverages to individuals. The Excess and Surplus Lines Insurance segment offers commercial casualty insurance that covers businesses for third-party liability from accidents occurring on their premises or arising out of their operations, such as injuries sustained from products; and commercial property insurance, which insures buildings, inventory, equipment, and business income from loss or damage due to causes, such as fire, wind, hail, water, theft, and vandalism. The Life Insurance segment provides term life insurance products; universal life insurance products; worksite products, such as term life, whole life, and disability insurance offered to employees through their employer; and whole life insurance products, as well as markets disability income insurance, deferred annuities, and immediate annuities. The Investments segment invests in fixed-maturity investments, including taxable and tax-exempt bonds, and redeemable preferred stocks; and equity investments comprising common and nonredeemable preferred stocks. The company also offers commercial leasing and financing services. Cincinnati Financial Corporation was founded in 1950 and is headquartered in Fairfield, Ohio.
About Horace Mann Educators
Horace Mann Educators Corporation, through its subsidiaries, operates as a multiline insurance company in the United States. The Company operates Property and Casualty Insurance, Annuity Products, and Life Insurance segments. It underwrites and markets personal lines of property and casualty insurance, including personal lines automobile and property insurance products; retirement products, such as tax-qualified annuities; and life insurance products. The company markets its products through its sales force of full-time exclusive distributors and independent agents to K-12 teachers, administrators, and other employees of public schools and their families. Horace Mann Educators Corporation was founded in 1945 and is headquartered in Springfield, Illinois.
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