Head-To-Head Survey: Hanover Insurance Group (THG) and Kingstone Companies (KINS)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Hanover Insurance Group 9.19% 11.02% 2.35%
Kingstone Companies -1.24% -1.76% -0.60%

Dividends

Hanover Insurance Group pays an annual dividend of $2.40 per share and has a dividend yield of 1.9%. Kingstone Companies pays an annual dividend of $0.40 per share and has a dividend yield of 4.7%. Hanover Insurance Group pays out 35.3% of its earnings in the form of a dividend. Kingstone Companies pays out 85.1% 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 has increased its dividend for 7 consecutive years and Kingstone Companies has increased its dividend for 6 consecutive years.

Volatility and Risk

Hanover Insurance Group has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Kingstone Companies has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.

Institutional & Insider Ownership

89.8% of Hanover Insurance Group shares are owned by institutional investors. Comparatively, 49.9% of Kingstone Companies shares are owned by institutional investors. 1.7% of Hanover Insurance Group shares are owned by insiders. Comparatively, 10.3% of Kingstone Companies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Hanover Insurance Group and Kingstone Companies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hanover Insurance Group 0 0 4 0 3.00
Kingstone Companies 0 0 1 0 3.00

Hanover Insurance Group currently has a consensus target price of $130.57, indicating a potential upside of 5.57%. Kingstone Companies has a consensus target price of $17.00, indicating a potential upside of 99.76%. Given Kingstone Companies’ higher possible upside, analysts plainly believe Kingstone Companies is more favorable than Hanover Insurance Group.

Valuation & Earnings

This table compares Hanover Insurance Group and Kingstone Companies’ top-line 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 1.12 $391.00 million $6.79 18.22
Kingstone Companies $113.77 million 0.80 $3.09 million $0.47 18.11

Hanover Insurance Group has higher revenue and earnings than Kingstone Companies. Kingstone Companies is trading at a lower price-to-earnings ratio than Hanover Insurance Group, indicating that it is currently the more affordable of the two stocks.

Summary

Hanover Insurance Group beats Kingstone Companies on 13 of the 16 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.

Kingstone Companies Company Profile

Kingstone Companies, Inc., through its subsidiary, Kingstone Insurance Company, underwrites property and casualty insurance products to small businesses and individuals in New York. The company offers personal lines insurance products, including homeowners and dwelling fire multi-peril, cooperative/condominiums, renters, and personal umbrella policies. It also provides commercial liability policies, such as business owner's policies comprising primarily of small business retail, service, and office risks; artisan's liability policies for small independent contractors; multi-peril policies for larger and specialized risks, and business owner's risks; and commercial umbrella policies. In addition, the company offers for-hire vehicle physical damage only policies for livery and car service vehicles and taxicabs; and canine legal liability policies, as well as reinsurance products. It sells its products through retail and wholesale agents and brokers. The company was formerly known as DCAP Group, Inc. and changed its name to Kingstone Companies, Inc. in July 2009. Kingstone Companies, Inc. was founded in 1886 and is headquartered in Kingston, New York.

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