Contrasting Kemper Corporation (KMPR) and Hartford Financial Services Group, Inc. (The) (HIG)

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

Dividends

Kemper Corporation pays an annual dividend of $0.96 per share and has a dividend yield of 2.4%. Hartford Financial Services Group, Inc. (The) pays an annual dividend of $0.92 per share and has a dividend yield of 1.7%. Kemper Corporation 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. Hartford Financial Services Group, Inc. (The) pays out 51.4% of its earnings in the form of a dividend. Hartford Financial Services Group, Inc. (The) has increased its dividend for 4 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Kemper Corporation 0.73% 0.44% 0.11%
Hartford Financial Services Group, Inc. (The) 3.73% 9.13% 0.71%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Kemper Corporation and Hartford Financial Services Group, Inc. (The), as reported by MarketBeat.com.

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

Hartford Financial Services Group, Inc. (The) has a consensus target price of $53.60, indicating a potential downside of 3.79%. 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 Corporation.

Institutional & Insider Ownership

55.2% of Kemper Corporation shares are owned by institutional investors. Comparatively, 90.0% of Hartford Financial Services Group, Inc. (The) shares are owned by institutional investors. 0.9% of Kemper Corporation shares are owned by insiders. Comparatively, 1.2% of Hartford Financial Services Group, Inc. (The) shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

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

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kemper Corporation $2.56 billion 0.80 $129.00 million $0.35 114.14
Hartford Financial Services Group, Inc. (The) $18.55 billion 1.09 $1.28 billion $1.79 31.12

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

Summary

Hartford Financial Services Group, Inc. (The) beats Kemper Corporation on 14 of the 17 factors compared between the two stocks.

About Kemper Corporation

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.

About Hartford Financial Services Group, Inc. (The)

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.

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