Analyzing The Hartford Insurance Group (NYSE:HIG) and NMI (NASDAQ:NMIH)

The Hartford Insurance Group (NYSE:HIG) and NMI (NASDAQ:NMIH) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Earnings and Valuation

This table compares The Hartford Insurance Group and NMI”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Hartford Insurance Group	$28.37 billion	1.22	$3.84 billion	$14.23	8.87
NMI	$706.44 million	3.81	$388.93 million	$4.91	7.21

The Hartford Insurance Group has higher revenue and earnings than NMI. NMI is trading at a lower price-to-earnings ratio than The Hartford Insurance Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for The Hartford Insurance Group and NMI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hartford Insurance Group	0	9	9	0	2.50
NMI	0	1	4	0	2.80

The Hartford Insurance Group presently has a consensus price target of $149.31, suggesting a potential upside of 18.36%. NMI has a consensus price target of $44.80, suggesting a potential upside of 26.48%. Given NMI’s stronger consensus rating and higher possible upside, analysts plainly believe NMI is more favorable than The Hartford Insurance Group.

Profitability

This table compares The Hartford Insurance Group and NMI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Hartford Insurance Group	14.10%	22.52%	4.79%
NMI	53.82%	15.18%	10.23%

Volatility and Risk

The Hartford Insurance Group has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, NMI has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.

Institutional & Insider Ownership

93.4% of The Hartford Insurance Group shares are owned by institutional investors. Comparatively, 94.1% of NMI shares are owned by institutional investors. 1.3% of The Hartford Insurance Group shares are owned by company insiders. Comparatively, 2.4% of NMI shares are owned by company 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.

Summary

NMI beats The Hartford Insurance Group on 8 of the 14 factors compared between the two stocks.

About The Hartford Insurance Group

The Hartford Financial Services Group, Inc., together with its subsidiaries, provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Its Commercial Lines segment offers insurance coverages, including workers' compensation, property, automobile, general and professional liability, package business, umbrella, fidelity and surety, marine, livestock, accident, health, and reinsurance through regional offices, branches, sales and policyholder service centers, independent retail agents and brokers, wholesale agents, and reinsurance brokers. The company's Personal Lines segment provides automobile, homeowners, and personal umbrella coverages through direct-to-consumer channels and independent agents. Its Property & Casualty Other Operations segment offers coverage for asbestos and environmental exposures. The company's Group Benefits segment provides group life, disability, and other group coverages to members of employer groups, associations, and affinity groups through direct insurance policies; reinsurance to other insurance companies; employer paid and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and leave management solution. This segment also distributes its group insurance products and services through brokers, consultants, third-party administrators, trade associations, and private exchanges. Its Hartford Funds segment offers managed mutual funds across various asset classes; and exchange-traded funds through broker-dealer organizations, independent financial advisers, defined contribution plans, financial consultants, bank trust groups, and registered investment advisers, as well as investment management, distribution, and administrative services, such as product design, implementation, and oversight. The company was founded in 1810 and is headquartered in Hartford, Connecticut.

About NMI

NMI Holdings, Inc. provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services, such as primary and pool insurance; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders. The company was incorporated in 2011 and is headquartered in Emeryville, California.