Comparing Hartford Financial Services Group, Inc. (The) (HIG) & Kemper Corp (NYSE:KMPR)

Hartford Financial Services Group, Inc. (The) (NYSE: HIG) and Kemper Corp (NYSE:KMPR) are both mid-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitabiliy, dividends, analyst recommendations, institutional ownership, earnings and risk.

Valuation & Earnings

This table compares Hartford Financial Services Group, Inc. (The) and Kemper Corp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hartford Financial Services Group, Inc. (The) $18.48 billion 1.09 $1.58 billion $2.44 22.47
Kemper Corp $2.56 billion 0.79 $129.00 million $0.35 112.14

Hartford Financial Services Group, Inc. (The) has higher revenue and earnings than Kemper Corp. Hartford Financial Services Group, Inc. (The) is trading at a lower price-to-earnings ratio than Kemper Corp, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Hartford Financial Services Group, Inc. (The) and Kemper Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hartford Financial Services Group, Inc. (The) 0 5 6 0 2.55
Kemper Corp 0 3 0 0 2.00

Hartford Financial Services Group, Inc. (The) currently has a consensus target price of $53.50, indicating a potential downside of 2.41%. Given Hartford Financial Services Group, Inc. (The)’s stronger consensus rating and higher probable upside, analysts clearly believe Hartford Financial Services Group, Inc. (The) is more favorable than Kemper Corp.

Insider & Institutional Ownership

89.8% of Hartford Financial Services Group, Inc. (The) shares are owned by institutional investors. Comparatively, 55.1% of Kemper Corp shares are owned by institutional investors. 1.2% of Hartford Financial Services Group, Inc. (The) shares are owned by company insiders. Comparatively, 0.9% of Kemper Corp 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.

Profitability

This table compares Hartford Financial Services Group, Inc. (The) and Kemper Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hartford Financial Services Group, Inc. (The) 5.12% 7.48% 0.59%
Kemper Corp -0.06% -0.06% -0.02%

Dividends

Hartford Financial Services Group, Inc. (The) pays an annual dividend of $0.92 per share and has a dividend yield of 1.7%. Kemper Corp pays an annual dividend of $0.96 per share and has a dividend yield of 2.4%. Hartford Financial Services Group, Inc. (The) pays out 37.7% of its earnings in the form of a dividend. Kemper Corp pays out 274.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kemper Corp has raised its dividend for 4 consecutive years. Kemper Corp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Hartford Financial Services Group, Inc. (The) has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Kemper Corp has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Summary

Hartford Financial Services Group, Inc. (The) beats Kemper Corp on 13 of the 17 factors compared between the two stocks.

Hartford Financial Services Group, Inc. (The) 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.

Kemper Corp Company Profile

Kemper Corporation (Kemper) is a diversified insurance holding company. The Company, through its subsidiaries, provides automobile, homeowners, life, health and other insurance products to individuals and businesses. The Company operates through two segments: Property & Casualty Insurance, and Life & Health Insurance. The Property & Casualty Insurance segment’s products include personal automobile insurance, both preferred and nonstandard, homeowners insurance, other personal insurance and commercial automobile insurance. These products are distributed primarily through independent agents and brokers. The Life & Health Insurance segment’s products are individual life, accident, health and property insurance. These products are distributed by career agents employed by the Company and independent agents and brokers.

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