Global Indemnity (GBLI) and Hanover Insurance Group (THG) Critical Contrast

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

Profitability

This table compares Global Indemnity and Hanover Insurance Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Indemnity -8.24% -3.44% -1.18%
Hanover Insurance Group 9.19% 11.02% 2.35%

Institutional and Insider Ownership

56.0% of Global Indemnity shares are held by institutional investors. Comparatively, 88.4% of Hanover Insurance Group shares are held by institutional investors. 41.4% of Global Indemnity shares are held by insiders. Comparatively, 1.7% of Hanover Insurance Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Global Indemnity has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Hanover Insurance Group has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Global Indemnity and Hanover Insurance Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Indemnity 0 0 0 0 N/A
Hanover Insurance Group 0 0 4 0 3.00

Hanover Insurance Group has a consensus target price of $130.57, indicating a potential upside of 7.31%. Given Hanover Insurance Group’s higher probable upside, analysts plainly believe Hanover Insurance Group is more favorable than Global Indemnity.

Dividends

Global Indemnity pays an annual dividend of $1.00 per share and has a dividend yield of 3.2%. Hanover Insurance Group pays an annual dividend of $2.40 per share and has a dividend yield of 2.0%. Hanover Insurance Group pays out 35.3% of its earnings in the form of a dividend. Hanover Insurance Group has increased its dividend for 7 consecutive years.

Earnings and Valuation

This table compares Global Indemnity and Hanover Insurance Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Indemnity $498.94 million 0.89 -$56.70 million N/A N/A
Hanover Insurance Group $4.49 billion 1.10 $391.00 million $6.79 17.92

Hanover Insurance Group has higher revenue and earnings than Global Indemnity.

Summary

Hanover Insurance Group beats Global Indemnity on 11 of the 14 factors compared between the two stocks.

About Global Indemnity

Global Indemnity Limited, through its subsidiaries, provides insurance and reinsurance products and services in the United States and internationally. The company operates through three segments: Commercial Lines, Personal Lines, and Reinsurance Operations. The Commercial Lines segment distributes property, general liability, casualty, and professional lines products, as well as products for vacant, and under construction and renovation dwellings. This segment primarily serves small commercial businesses through a network of wholesale general agents, program administrators, brokers, aggregators, and retail agents. The Personal Lines segment offers specialty personal lines and agricultural coverage, including agriculture, mobile homes, manufactured homes, homeowners, collectibles, and watersports primarily through retail agents, wholesale general agents, and brokers. The Reinsurance Operations segment provides third party treaty reinsurance solutions to specialty property and casualty insurance, and reinsurance companies; and professional liability products to companies through brokers, as well as on a direct basis. The company was incorporated in 2016 and is based in George Town, the Cayman Islands.

About Hanover Insurance Group

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.

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