Comparing Enstar Gr (ESGR) & The Hartford (NYSE:HIG)

The Hartford (NYSE: HIG) and Enstar Gr (NASDAQ:ESGR) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Volatility & Risk

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The Hartford has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Enstar Gr has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Profitability

This table compares The Hartford and Enstar Gr’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Hartford -16.79% 7.89% 0.57%
Enstar Gr 28.14% 10.00% 2.07%

Insider & Institutional Ownership

89.9% of The Hartford shares are owned by institutional investors. Comparatively, 81.8% of Enstar Gr shares are owned by institutional investors. 1.5% of The Hartford shares are owned by company insiders. Comparatively, 9.9% of Enstar Gr shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

The Hartford pays an annual dividend of $1.00 per share and has a dividend yield of 2.0%. Enstar Gr does not pay a dividend. The Hartford pays out 36.5% of its earnings in the form of a dividend. The Hartford has increased its dividend for 5 consecutive years.

Earnings and Valuation

This table compares The Hartford and Enstar Gr’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Hartford $16.97 billion 1.08 -$3.13 billion $2.74 18.66
Enstar Gr $1.11 billion 3.72 $311.45 million N/A N/A

Enstar Gr has lower revenue, but higher earnings than The Hartford.

Analyst Ratings

This is a breakdown of current recommendations and price targets for The Hartford and Enstar Gr, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Hartford 0 4 6 0 2.60
Enstar Gr 0 0 0 0 N/A

The Hartford currently has a consensus target price of $59.50, indicating a potential upside of 16.39%. Given The Hartford’s higher possible upside, research analysts plainly believe The Hartford is more favorable than Enstar Gr.

Summary

The Hartford beats Enstar Gr on 8 of the 15 factors compared between the two stocks.

About The Hartford

The Hartford Financial Services Group, Inc., through its subsidiaries, provides insurance and financial services to individual and business customers in the United States. It operates through five segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits, and Mutual Funds. The Commercial Lines segment offers workers' compensation, property, automobile, marine, livestock, liability, and umbrella insurance products, as well as customized insurance products and risk management services, including professional liability, bond, surety, and specialty casualty coverages. The Personal Lines segment provides automobile, homeowners, and personal umbrella coverages to individuals. The Property & Casualty Other Operations segment provides coverage for asbestos and environmental exposures. The Group Benefits segment provides group life, accident and disability, and other group coverages to members of employer groups, associations, and affinity groups through direct insurance policies; reinsurance to other insurance companies; employer paid coverages and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and a single-company leave management solution. The Mutual Funds segment provides investment products for retail and retirement accounts, as well as exchange-traded products; and investment-management and administrative services, such as product design, implementation, and oversight. The Hartford Financial Services Group, Inc. was founded in 1810 and is headquartered in Hartford, Connecticut.

About Enstar Gr

Enstar Group Limited acquires and manages insurance and reinsurance companies, and portfolios of insurance and reinsurance business in run-off. It operates in three segments: Non-Life Run-Off, Atrium, and StarStone. The Non-Life Run-Off segment engages in the running off property and casualty, and other non-life lines of businesses. It also provides consulting services, including claims inspection, claims validation, reinsurance asset collection, and IT consulting services to the insurance and reinsurance industry. The Atrium segment is involved in underwriting various classes, including marine, aviation, transit, property and casualty binding authorities, reinsurance, accident and health, and non marine direct and facultative. The StarStone segment offers a range of property, casualty, and specialty insurance products to large multi-national, and small and middle-market clients. The company operates in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and internationally. The company was formerly known as Castlewood Holdings Limited and changed its name to Enstar Group Limited as a result of its merger with The Enstar Group, Inc. in January 2007. Enstar Group Limited was founded in 2001 and is headquartered in Hamilton, Bermuda.

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