Fortegra Financial (FRF) versus Hartford Financial Services Group (HIG) Financial Comparison

Fortegra Financial (NYSE: FRF) and Hartford Financial Services Group (NYSE:HIG) are both financials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings for Fortegra Financial and Hartford Financial Services Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortegra Financial 0 0 0 0 N/A
Hartford Financial Services Group 0 5 6 0 2.55

Hartford Financial Services Group has a consensus target price of $58.55, suggesting a potential upside of 8.14%. Given Hartford Financial Services Group’s higher possible upside, analysts clearly believe Hartford Financial Services Group is more favorable than Fortegra Financial.

Institutional & Insider Ownership

87.1% of Hartford Financial Services Group shares are held by institutional investors. 1.5% of Hartford Financial Services Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Fortegra Financial has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Hartford Financial Services Group has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Valuation and Earnings

This table compares Fortegra Financial and Hartford Financial Services Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fortegra Financial N/A N/A N/A $0.64 15.58
Hartford Financial Services Group $16.97 billion 1.14 -$3.13 billion ($8.84) -6.12

Fortegra Financial has higher earnings, but lower revenue than Hartford Financial Services Group. Hartford Financial Services Group is trading at a lower price-to-earnings ratio than Fortegra Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Fortegra Financial and Hartford Financial Services Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fortegra Financial N/A N/A N/A
Hartford Financial Services Group -16.79% 7.89% 0.57%

Dividends

Hartford Financial Services Group pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Fortegra Financial does not pay a dividend. Hartford Financial Services Group pays out -11.3% of its earnings in the form of a dividend. Fortegra Financial has raised its dividend for 5 consecutive years.

Summary

Hartford Financial Services Group beats Fortegra Financial on 10 of the 14 factors compared between the two stocks.

Fortegra Financial Company Profile

Fortegra Financial Corporation is specializing in insurance products and services. The Company’s business process outsourcing segment offers various administrative services under the Consecta and Pacific Benefits Group Northwest, LLC brand names to insurance and other financial services companies. The Company’s Payment Protection segment delivers credit insurance, debt protection, warranty and service contracts, and motor club solutions under the Life of the South, Continental Car Club, United Motor Club, and Auto Knight Motor Club brand names to consumer finance companies, regional banks, community banks, retailers, small loan companies, warranty administrators, automobile dealers, vacation ownership developers, and credit unions.

Hartford Financial Services Group Company Profile

The Hartford Financial Services Group, Inc. is a holding company for insurance and financial services subsidiaries. The Company’s segments include Commercial Lines, which provides workers’ compensation, property, automobile, marine, livestock, liability and umbrella coverages primarily throughout the United States; Personal Lines, which provides automobile, homeowners and personal umbrella coverages to individuals across the United States; Group Benefits, which provides group life, accident and disability coverage, and other products and services; Property & Casualty Other Operations, which includes certain property and casualty operations; Mutual Funds, which provides investment management, administration, product distribution and related services to investors; Talcott Resolution, which consists of the run-off of the Company’s the United States individual and institutional annuity, and Private Placement Life Insurance (PPLI) businesses, and Corporate.

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

Leave a Reply