The Hanover Insurance Group (THG) versus Its Rivals Critical Review
The Hanover Insurance Group (NYSE: THG) is one of 92 public companies in the “Property & Casualty Insurance” industry, but how does it contrast to its peers? We will compare The Hanover Insurance Group to similar businesses based on the strength of its earnings, dividends, analyst recommendations, valuation, risk, institutional ownership and profitability.
The Hanover Insurance Group pays an annual dividend of $2.00 per share and has a dividend yield of 2.0%. The Hanover Insurance Group pays out 43.3% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.4% and pay out 26.6% of their earnings in the form of a dividend. The Hanover Insurance Group has increased its dividend for 5 consecutive years.
Institutional & Insider Ownership
84.2% of The Hanover Insurance Group shares are owned by institutional investors. Comparatively, 60.8% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 1.1% of The Hanover Insurance Group shares are owned by insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares The Hanover Insurance Group and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Hanover Insurance Group||3.95%||5.83%||1.19%|
|The Hanover Insurance Group Competitors||10.09%||5.29%||2.71%|
This is a summary of current ratings and price targets for The Hanover Insurance Group and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Hanover Insurance Group||0||1||2||0||2.67|
|The Hanover Insurance Group Competitors||598||2232||2117||41||2.32|
The Hanover Insurance Group currently has a consensus target price of $89.50, indicating a potential downside of 8.78%. As a group, “Property & Casualty Insurance” companies have a potential downside of 0.20%. Given The Hanover Insurance Group’s peers higher probable upside, analysts plainly believe The Hanover Insurance Group has less favorable growth aspects than its peers.
Volatility & Risk
The Hanover Insurance Group has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, The Hanover Insurance Group’s peers have a beta of 0.93, meaning that their average stock price is 7% less volatile than the S&P 500.
Earnings & Valuation
This table compares The Hanover Insurance Group and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|The Hanover Insurance Group||$5.02 billion||$342.30 million||21.24|
|The Hanover Insurance Group Competitors||$11.75 billion||$2.00 billion||36.13|
The Hanover Insurance Group’s peers 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 peers, indicating that it is currently more affordable than other companies in its industry.
The Hanover Insurance Group peers beat The Hanover Insurance Group on 9 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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