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

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

Analyst Ratings

This is a summary of current ratings and price targets for Hartford Financial Services Group, Inc. (The) and Kemper Corporation, as provided 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) presently has a consensus target price of $55.38, suggesting a potential downside of 0.33%. Kemper Corporation has a consensus target price of $55.00, suggesting a potential upside of 12.13%. Given Kemper Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Kemper Corporation is more favorable than Hartford Financial Services Group, Inc. (The).

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%

Insider and Institutional Ownership

90.5% of Hartford Financial Services Group, Inc. (The) shares are held by institutional investors. Comparatively, 55.0% of Kemper Corporation shares are held by institutional investors. 1.2% of Hartford Financial Services Group, Inc. (The) shares are held by company insiders. Comparatively, 0.9% of Kemper Corporation shares are held 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.

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 Corporation pays an annual dividend of $0.96 per share and has a dividend yield of 2.0%. 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.

Earnings & Valuation

This table compares Hartford Financial Services Group, Inc. (The) and Kemper Corporation’s 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 1.09 $1.28 billion $1.79 31.04
Kemper Corporation $2.62 billion 0.96 $169.90 million $0.98 50.05

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 and 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 Corporation 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 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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