Axis Capital (NYSE:AXS – Get Free Report) and The Hartford Insurance Group (NYSE:HIG – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Dividends
Axis Capital pays an annual dividend of $1.76 per share and has a dividend yield of 1.7%. The Hartford Insurance Group pays an annual dividend of $2.40 per share and has a dividend yield of 1.8%. Axis Capital pays out 12.5% of its earnings in the form of a dividend. The Hartford Insurance Group pays out 15.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. The Hartford Insurance Group has raised its dividend for 12 consecutive years. The Hartford Insurance Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
93.4% of Axis Capital shares are held by institutional investors. Comparatively, 93.4% of The Hartford Insurance Group shares are held by institutional investors. 0.6% of Axis Capital shares are held by insiders. Comparatively, 1.3% of The Hartford Insurance Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Axis Capital and The Hartford Insurance Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Axis Capital | $6.85 billion | 1.09 | $1.01 billion | $14.08 | 7.29 |
| The Hartford Insurance Group | $28.88 billion | 1.28 | $3.84 billion | $15.47 | 8.84 |
The Hartford Insurance Group has higher revenue and earnings than Axis Capital. Axis Capital is trading at a lower price-to-earnings ratio than The Hartford Insurance Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Axis Capital and The Hartford Insurance Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Axis Capital | 16.23% | 17.00% | 2.82% |
| The Hartford Insurance Group | 15.00% | 21.66% | 4.68% |
Risk and Volatility
Axis Capital has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, The Hartford Insurance Group has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for Axis Capital and The Hartford Insurance Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Axis Capital | 0 | 4 | 8 | 1 | 2.77 |
| The Hartford Insurance Group | 0 | 12 | 5 | 1 | 2.39 |
Axis Capital presently has a consensus price target of $119.08, suggesting a potential upside of 15.93%. The Hartford Insurance Group has a consensus price target of $145.25, suggesting a potential upside of 6.22%. Given Axis Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Axis Capital is more favorable than The Hartford Insurance Group.
Summary
The Hartford Insurance Group beats Axis Capital on 11 of the 17 factors compared between the two stocks.
About Axis Capital
AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products in Bermuda, the United States, and internationally. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers professional insurance products that cover directors' and officers' liability, errors and omissions, employment practices, fiduciary, crime, professional indemnity, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers; and property insurance products for commercial buildings, residential premises, construction projects, property in transit, onshore renewable energy installations, and physical damage and business interruption following an act of terrorism. This segment also provides marine and aviation insurance services for offshore energy, renewable offshore energy, cargo, liability, including kidnap and ransom, fine art, specie, and hull war, hull and liability, and specific war coverage for passenger airlines, cargo operations, general aviation operations, airports, aviation authorities, security firms, and product manufacturers; personal accident, travel insurance, specialty health products for employer and affinity groups, and pet insurance products; and liability, cyber, and credit and political risk insurance services. The Reinsurance segment offers agriculture, marine and aviation, catastrophe, accidental and health, credit and surety, motor, professional, travel, life, engineering, property, and liability reinsurance products. AXIS Capital Holdings Limited was founded in 2001 and is headquartered in Pembroke, Bermuda.
About The Hartford Insurance Group
The Hartford Financial Services Group, Inc., together with its subsidiaries, provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Its Commercial Lines segment offers insurance coverages, including workers' compensation, property, automobile, general and professional liability, package business, umbrella, fidelity and surety, marine, livestock, accident, health, and reinsurance through regional offices, branches, sales and policyholder service centers, independent retail agents and brokers, wholesale agents, and reinsurance brokers. The company's Personal Lines segment provides automobile, homeowners, and personal umbrella coverages through direct-to-consumer channels and independent agents. Its Property & Casualty Other Operations segment offers coverage for asbestos and environmental exposures. The company's Group Benefits segment provides group life, 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 and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and leave management solution. This segment also distributes its group insurance products and services through brokers, consultants, third-party administrators, trade associations, and private exchanges. Its Hartford Funds segment offers managed mutual funds across various asset classes; and exchange-traded funds through broker-dealer organizations, independent financial advisers, defined contribution plans, financial consultants, bank trust groups, and registered investment advisers, as well as investment management, distribution, and administrative services, such as product design, implementation, and oversight. The company was founded in 1810 and is headquartered in Hartford, Connecticut.
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