Hartford Financial Services Group, Inc. (The) (HIG) versus Kemper Corporation (KMPR) Critical Survey

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

Institutional and Insider Ownership

90.5% of Hartford Financial Services Group, Inc. (The) shares are owned by institutional investors. Comparatively, 55.0% of Kemper Corporation 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 Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hartford Financial Services Group, Inc. (The) $18.55 billion 1.12 $1.28 billion $1.79 31.74
Kemper Corporation $2.62 billion 0.97 $169.90 million $0.98 50.61

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.

Volatility & Risk

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

Profitability

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

Net Margins Return on Equity Return on Assets
Hartford Financial Services Group, Inc. (The) 3.73% 9.13% 0.71%
Kemper Corporation 1.95% 1.26% 0.31%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Hartford Financial Services Group, Inc. (The) and Kemper Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hartford Financial Services Group, Inc. (The) 0 4 5 0 2.56
Kemper Corporation 0 2 0 1 2.67

Hartford Financial Services Group, Inc. (The) currently has a consensus target price of $55.38, indicating a potential downside of 2.53%. Kemper Corporation has a consensus target price of $55.00, indicating a potential upside of 10.89%. Given Kemper Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Kemper Corporation is more favorable than Hartford Financial Services Group, Inc. (The).

Dividends

Hartford Financial Services Group, Inc. (The) pays an annual dividend of $0.92 per share and has a dividend yield of 1.6%. Kemper Corporation pays an annual dividend of $0.96 per share and has a dividend yield of 1.9%. Hartford Financial Services Group, Inc. (The) pays out 51.4% of its earnings in the form of a dividend. Kemper Corporation pays out 98.0% 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) has raised its dividend for 4 consecutive years.

Summary

Hartford Financial Services Group, Inc. (The) beats Kemper Corporation on 12 of the 18 factors compared between the two stocks.

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.

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.




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