Everest Re Group (NYSE:RE) and Hanover Insurance Group (NYSE:THG) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.
Risk and Volatility
Everest Re Group has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, Hanover Insurance Group has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.
This table compares Everest Re Group and Hanover Insurance Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Everest Re Group||1.40%||2.33%||0.79%|
|Hanover Insurance Group||7.88%||11.14%||2.24%|
Institutional & Insider Ownership
93.3% of Everest Re Group shares are owned by institutional investors. Comparatively, 89.6% of Hanover Insurance Group shares are owned by institutional investors. 1.3% of Everest Re Group shares are owned by insiders. Comparatively, 1.7% of Hanover Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Everest Re Group and Hanover Insurance Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Everest Re Group||0||6||1||0||2.14|
|Hanover Insurance Group||0||0||4||0||3.00|
Everest Re Group currently has a consensus price target of $245.43, suggesting a potential upside of 7.16%. Hanover Insurance Group has a consensus price target of $130.57, suggesting a potential upside of 11.57%. Given Hanover Insurance Group’s stronger consensus rating and higher probable upside, analysts plainly believe Hanover Insurance Group is more favorable than Everest Re Group.
Valuation & Earnings
This table compares Everest Re Group and Hanover Insurance Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Everest Re Group||$7.38 billion||1.57||$103.55 million||$4.65||49.26|
|Hanover Insurance Group||$4.49 billion||1.06||$391.00 million||$6.79||17.24|
Hanover Insurance Group has lower revenue, but higher earnings than Everest Re Group. Hanover Insurance Group is trading at a lower price-to-earnings ratio than Everest Re Group, indicating that it is currently the more affordable of the two stocks.
Everest Re Group pays an annual dividend of $5.60 per share and has a dividend yield of 2.4%. Hanover Insurance Group pays an annual dividend of $2.40 per share and has a dividend yield of 2.1%. Everest Re Group pays out 120.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hanover Insurance Group pays out 35.3% of its earnings in the form of a dividend. Everest Re Group has increased its dividend for 6 consecutive years and Hanover Insurance Group has increased its dividend for 7 consecutive years.
Hanover Insurance Group beats Everest Re Group on 12 of the 17 factors compared between the two stocks.
Everest Re Group Company Profile
Everest Re Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Bermuda, and internationally. The company operates through four segments: U.S. Reinsurance, International, Bermuda, and Insurance. The U.S. Reinsurance segment writes property and casualty reinsurance; and specialty lines of business, including marine, aviation, surety, and accident and health insurance through reinsurance brokers, as well as directly with ceding companies in the Unites States. The International segment writes property and casualty reinsurance in Canada, Singapore, Brazil, Miami, and New Jersey. The Bermuda segment provides reinsurance and insurance to property and casualty markets through brokers and directly with ceding companies in Bermuda; and reinsurance to the United Kingdom and European markets. The Insurance segment writes property and casualty insurance products directly, as well as through general agents, brokers, and surplus lines brokers in the United States, Canada, and Europe. The company also provides property and casualty reinsurance and insurance coverages, such as errors and omissions liability, directors' and officers' liability, medical malpractice, and worker's compensation products. Everest Re Group, Ltd. was founded in 1973 and is headquartered in Hamilton, Bermuda.
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.
Receive News & Ratings for Everest Re Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Everest Re Group and related companies with MarketBeat.com's FREE daily email newsletter.