Sirius International Insurance Group (NASDAQ:SG) and The Hanover Insurance Group (NYSE:THG) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.
Profitability
This table compares Sirius International Insurance Group and The Hanover Insurance Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Sirius International Insurance Group | -23.54% | -21.33% | -4.92% |
| The Hanover Insurance Group | 6.35% | 10.90% | 2.54% |
Insider and Institutional Ownership
1.7% of Sirius International Insurance Group shares are held by institutional investors. Comparatively, 85.0% of The Hanover Insurance Group shares are held by institutional investors. 0.7% of Sirius International Insurance Group shares are held by insiders. Comparatively, 2.2% of The Hanover Insurance Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Sirius International Insurance Group and The Hanover Insurance Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Sirius International Insurance Group | 0 | 0 | 0 | 0 | N/A |
| The Hanover Insurance Group | 0 | 2 | 3 | 0 | 2.60 |
The Hanover Insurance Group has a consensus target price of $130.20, indicating a potential downside of 2.91%. Given The Hanover Insurance Group's higher possible upside, analysts clearly believe The Hanover Insurance Group is more favorable than Sirius International Insurance Group.
Valuation & Earnings
This table compares Sirius International Insurance Group and The Hanover Insurance Group's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Sirius International Insurance Group | $1.72 billion | 0.84 | $-47,300,000.00 | N/A | N/A |
| The Hanover Insurance Group | $4.89 billion | 1.00 | $425.10 million | $8.16 | 16.43 |
The Hanover Insurance Group has higher revenue and earnings than Sirius International Insurance Group.
Risk & Volatility
Sirius International Insurance Group has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, The Hanover Insurance Group has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.
Summary
The Hanover Insurance Group beats Sirius International Insurance Group on 12 of the 12 factors compared between the two stocks.
