Hanover Insurance Group (NYSE:THG) and Kingstone Companies (NASDAQ:KINS) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.
Hanover Insurance Group pays an annual dividend of $2.40 per share and has a dividend yield of 2.0%. Kingstone Companies pays an annual dividend of $0.40 per share and has a dividend yield of 4.3%. Hanover Insurance Group pays out 35.3% of its earnings in the form of a dividend. Kingstone Companies pays out 85.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hanover Insurance Group has raised its dividend for 7 consecutive years and Kingstone Companies has raised its dividend for 6 consecutive years.
85.2% of Hanover Insurance Group shares are held by institutional investors. Comparatively, 48.9% of Kingstone Companies shares are held by institutional investors. 1.7% of Hanover Insurance Group shares are held by insiders. Comparatively, 10.3% of Kingstone Companies shares are held by 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.
Risk and Volatility
Hanover Insurance Group has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Kingstone Companies has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.
This is a breakdown of current ratings for Hanover Insurance Group and Kingstone Companies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hanover Insurance Group||0||0||4||0||3.00|
Hanover Insurance Group currently has a consensus target price of $130.57, indicating a potential upside of 7.49%. Kingstone Companies has a consensus target price of $13.00, indicating a potential upside of 41.30%. Given Kingstone Companies’ higher possible upside, analysts clearly believe Kingstone Companies is more favorable than Hanover Insurance Group.
Earnings & Valuation
This table compares Hanover Insurance Group and Kingstone Companies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hanover Insurance Group||$4.49 billion||1.10||$391.00 million||$6.79||17.89|
|Kingstone Companies||$113.77 million||0.87||$3.09 million||$0.47||19.57|
Hanover Insurance Group has higher revenue and earnings than Kingstone Companies. Hanover Insurance Group is trading at a lower price-to-earnings ratio than Kingstone Companies, indicating that it is currently the more affordable of the two stocks.
This table compares Hanover Insurance Group and Kingstone Companies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hanover Insurance Group||9.19%||11.02%||2.35%|
Hanover Insurance Group beats Kingstone Companies on 12 of the 16 factors compared between the two stocks.
About Hanover Insurance Group
The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States. The company operates in three segments: Commercial Lines, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, workers' compensation, umbrella, healthcare, mono-line general liability, and miscellaneous commercial property insurance products; and other commercial coverages, including inland marine, specialty program business, management and professional liability, surety, and specialty property. The Personal Lines segment provides personal automobile and homeowner's coverages, as well as other personal coverages, such as personal inland marine, umbrella, fire, personal watercraft, earthquake, and other miscellaneous coverages. The Other segment offers investment management and advisory services to institutions, pension funds, and other organizations. The company markets its products and services through independent agents and brokers. The Hanover Insurance Group, Inc. was founded in 1852 and is headquartered in Worcester, Massachusetts.
About Kingstone Companies
Kingstone Companies, Inc., through its subsidiary, Kingstone Insurance Company, underwrites property and casualty insurance products to small businesses and individuals in New York. The company offers personal lines insurance products, including homeowners and dwelling fire multi-peril, cooperative/condominiums, renters, and personal umbrella policies. It also provides commercial liability policies, such as business owner's policies comprising primarily of small business retail, service, and office risks; artisan's liability policies for small independent contractors; multi-peril policies for larger and specialized risks, and business owner's risks; and commercial umbrella policies. In addition, the company offers for-hire vehicle physical damage only policies for livery and car service vehicles and taxicabs; and canine legal liability policies, as well as reinsurance products. It sells its products through retail and wholesale agents and brokers. The company was formerly known as DCAP Group, Inc. and changed its name to Kingstone Companies, Inc. in July 2009. Kingstone Companies, Inc. was founded in 1886 and is headquartered in Kingston, New York.
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