Enstar Group (NASDAQ: ESGR) and Hartford Financial Services Group (NYSE:HIG) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Volatility & Risk
Enstar Group has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Hartford Financial Services Group has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.
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%|
This is a summary of current recommendations and price targets 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, indicating a potential upside of 8.14%. Given Hartford Financial Services Group’s higher probable upside, analysts clearly believe Hartford Financial Services Group is more favorable than Enstar Group.
Institutional and Insider Ownership
88.8% of Enstar Group shares are owned by institutional investors. Comparatively, 87.1% of Hartford Financial Services Group shares are owned by institutional investors. 9.9% of Enstar Group shares are owned by company insiders. Comparatively, 1.5% of Hartford Financial Services Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Hartford Financial Services Group pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Enstar Group does not pay a dividend. Hartford Financial Services Group pays out -11.3% of its earnings in the form of a dividend. Hartford Financial Services Group has raised its dividend for 5 consecutive years.
Valuation and Earnings
This table compares Enstar Group and Hartford Financial Services Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enstar Group||$1.13 billion||3.40||$264.80 million||$10.57||18.72|
|Hartford Financial Services Group||$16.97 billion||1.14||-$3.13 billion||($8.84)||-6.12|
Enstar Group has higher earnings, but lower revenue than Hartford Financial Services Group. Hartford Financial Services Group is trading at a lower price-to-earnings ratio than Enstar Group, indicating that it is currently the more affordable of the two stocks.
Enstar Group Company Profile
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.
Hartford Financial Services Group Company Profile
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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