Comparing Horace Mann Educators (HMN) & Validus (VR)

Horace Mann Educators (NYSE:HMN) and Validus (NYSE:VR) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Horace Mann Educators and Validus, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Horace Mann Educators 0 1 0 0 2.00
Validus 0 4 0 0 2.00

Horace Mann Educators currently has a consensus target price of $43.00, suggesting a potential upside of 5.65%. Validus has a consensus target price of $50.00, suggesting a potential downside of 26.46%. Given Horace Mann Educators’ higher probable upside, equities research analysts clearly believe Horace Mann Educators is more favorable than Validus.

Profitability

This table compares Horace Mann Educators and Validus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Horace Mann Educators 13.48% 4.53% 0.58%
Validus N/A N/A N/A

Valuation and Earnings

This table compares Horace Mann Educators and Validus’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Horace Mann Educators $1.17 billion 1.42 $169.45 million $1.74 23.39
Validus N/A N/A N/A N/A N/A

Horace Mann Educators has higher revenue and earnings than Validus.

Dividends

Horace Mann Educators pays an annual dividend of $1.14 per share and has a dividend yield of 2.8%. Validus pays an annual dividend of $1.52 per share and has a dividend yield of 2.2%. Horace Mann Educators pays out 65.5% of its earnings in the form of a dividend. Horace Mann Educators has raised its dividend for 9 consecutive years and Validus has raised its dividend for 3 consecutive years. Horace Mann Educators is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

99.3% of Horace Mann Educators shares are owned by institutional investors. Comparatively, 82.0% of Validus shares are owned by institutional investors. 2.2% of Horace Mann Educators shares are owned by company insiders. Comparatively, 2.3% of Validus shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Horace Mann Educators beats Validus on 8 of the 10 factors compared between the two stocks.

Horace Mann Educators Company Profile

Horace Mann Educators Corporation, through its subsidiaries, operates as a multiline insurance company in the United States. The Company operates Property and Casualty Insurance, Annuity Products, and Life Insurance segments. It underwrites and markets personal lines of property and casualty insurance, including personal lines automobile and property insurance products; retirement products, such as tax-qualified annuities; and life insurance products. The company markets its products through its sales force of full-time exclusive distributors and independent agents to K-12 teachers, administrators, and other employees of public schools and their families. Horace Mann Educators Corporation was founded in 1945 and is headquartered in Springfield, Illinois.

Validus Company Profile

Validus Holdings, Ltd. provides reinsurance coverage, insurance coverage, and insurance linked securities management services worldwide. It operates through three segments: Reinsurance, Insurance, and Asset Management. The Reinsurance segment underwrites property reinsurance products on a catastrophe excess of loss, per risk excess of loss and proportional basis; and aerospace and aviation, agriculture, composite, marine, technical lines, terrorism, trade credit, workers' compensation, and other specialty lines, as well as casualty and financial lines. The Insurance segment underwrites property, accident and health, agriculture, aviation, contingency, marine, and political lines insurance products; bankers blanket bond, commercial crime, computer crime, cyber- crime, professional indemnity, and directors' and officers' insurance products for various financial institutions and other companies; and commercial and institutional risks comprising general, professional, and product liability, as well as miscellaneous malpractice insurance products. This segment also underwrites marine and energy liability, and political risk insurance products, as well as insurance products for repair, maintenance, and upkeep of aircrafts and premises for small companies. The Asset Management segment manages capital for third parties through insurance-linked securities, and other property catastrophe and specialty reinsurance investments. Validus Holdings, Ltd. was founded in 2005 and is based in Pembroke, Bermuda.

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