Hanover Insurance Group (NYSE:THG) and Tiptree (NYSE:TIPT) Head-To-Head Survey

Hanover Insurance Group (NYSE:THG) and Tiptree (NASDAQ:TIPT) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Risk and Volatility

Hanover Insurance Group has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Tiptree has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Hanover Insurance Group 9.27% 10.62% 2.57%
Tiptree 2.01% 1.27% 0.27%

Institutional & Insider Ownership

84.6% of Hanover Insurance Group shares are owned by institutional investors. Comparatively, 33.7% of Tiptree shares are owned by institutional investors. 1.7% of Hanover Insurance Group shares are owned by insiders. Comparatively, 25.6% of Tiptree shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Hanover Insurance Group pays an annual dividend of $2.60 per share and has a dividend yield of 1.9%. Tiptree pays an annual dividend of $0.16 per share and has a dividend yield of 2.1%. Hanover Insurance Group pays out 38.3% of its earnings in the form of a dividend. Hanover Insurance Group has increased its dividend for 7 consecutive years and Tiptree has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings for Hanover Insurance Group and Tiptree, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hanover Insurance Group 0 0 1 0 3.00
Tiptree 0 0 0 0 N/A

Hanover Insurance Group presently has a consensus target price of $118.71, indicating a potential downside of 13.85%. Given Hanover Insurance Group’s higher probable upside, equities research analysts plainly believe Hanover Insurance Group is more favorable than Tiptree.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hanover Insurance Group $4.49 billion 1.21 $391.00 million $6.79 20.29
Tiptree $625.83 million 0.43 $23.93 million N/A N/A

Hanover Insurance Group has higher revenue and earnings than Tiptree.

Summary

Hanover Insurance Group beats Tiptree on 11 of the 15 factors compared between the two stocks.

Hanover Insurance Group Company Profile

The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States. The company operates in three segments: Commercial Lines, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, workers' compensation, umbrella, healthcare, mono-line general liability, and miscellaneous commercial property insurance products; and other commercial coverages, including inland marine, specialty program business, management and professional liability, surety, and specialty property. The Personal Lines segment provides personal automobile and homeowner's coverages, as well as other personal coverages, such as personal inland marine, umbrella, fire, personal watercraft, earthquake, and other miscellaneous coverages. The Other segment offers investment management and advisory services to institutions, pension funds, and other organizations. The company markets its products and services through independent agents and brokers. The Hanover Insurance Group, Inc. was founded in 1852 and is headquartered in Worcester, Massachusetts.

Tiptree Company Profile

Tiptree Inc., through its subsidiaries, underwrites and administers specialty insurance products primarily in the United States. The company provides credit protection insurance, warranty and service contract products, and niche commercial and consumer insurance programs, as well as offers value-add services, including premium finance and business processing services. It also engages in asset management operations; the provision of mortgage loans for institutional investors; and other investment activities. Tiptree Inc. markets its products through a network of independent insurance brokers and managing general agencies. The company was formerly known as Tiptree Financial Inc. and changed its name to Tiptree Inc. in December 2016. Tiptree Inc. was incorporated in 2007 and is based in New York, New York.

Receive News & Ratings for Hanover Insurance Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hanover Insurance Group and related companies with MarketBeat.com's FREE daily email newsletter.