Hippo (NYSE:HIPO) and The Hanover Insurance Group (NYSE:THG) Head-To-Head Review

The Hanover Insurance Group (NYSE:THG) and Hippo (NYSE:HIPO) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Valuation and Earnings

This table compares The Hanover Insurance Group and Hippo’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Hanover Insurance Group	$5.99 billion	0.78	$35.30 million	$4.46	29.35
Hippo	$209.70 million	2.18	-$273.10 million	($10.08)	-1.86

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for The Hanover Insurance Group and Hippo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hanover Insurance Group	0	1	4	0	2.80
Hippo	0	3	1	0	2.25

The Hanover Insurance Group presently has a consensus price target of $146.00, indicating a potential upside of 11.54%. Hippo has a consensus price target of $18.67, indicating a potential downside of 0.39%. Given The Hanover Insurance Group’s stronger consensus rating and higher possible upside, analysts clearly believe The Hanover Insurance Group is more favorable than Hippo.

Volatility & Risk

The Hanover Insurance Group has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Hippo has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Institutional & Insider Ownership

86.6% of The Hanover Insurance Group shares are held by institutional investors. Comparatively, 43.0% of Hippo shares are held by institutional investors. 2.4% of The Hanover Insurance Group shares are held by insiders. Comparatively, 11.4% of Hippo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
The Hanover Insurance Group	2.67%	7.00%	1.13%
Hippo	-93.69%	-59.81%	-15.05%

Summary

The Hanover Insurance Group beats Hippo on 10 of the 13 factors compared between the two stocks.

About The 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 through four segments: Core Commercial, Specialty, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, workers' compensation, and other commercial lines coverage. The Specialty segment provides professional and executive Lines, marine, and surety and other, as well as specialty property and casualty, such as program business, specialty industrial business, excess and surplus business, and specialty general liability coverage. The Personal Lines segment offers personal automobile and homeowner's coverages, as well as other personal coverages, such as personal umbrella, inland marine, fire, personal watercraft, personal cyber, and other miscellaneous coverages. The Other segment markets investment advisory services to institutions, insurance companies, pension funds, and other organizations. The Hanover Insurance Group, Inc. markets its products and services through independent agents and brokers. The company was formerly known as Allmerica Financial Corp. and changed its name to The Hanover Insurance Group, Inc. in December 2005. The Hanover Insurance Group, Inc. was founded in 1852 and is headquartered in Worcester, Massachusetts.

About Hippo

Hippo Holdings Inc. provides property and casualty insurance products to individuals and business customers primarily in the United States. The company operates through three segments: Services, Insurance-as-a-Service, and Hippo Home Insurance Program. Its insurance products include homeowners' insurance against risks of fire, wind, and theft, as well as other personal lines policies from third party carriers; and personal and commercial, as well as home, auto, cyber, small business, life, specialty lines, and other insurance products. The company distributes insurance products and services through its technology platform and website, as well as operates licensed insurance agencies. Hippo Holdings Inc. is headquartered in Palo Alto, California.