Principal Financial Group (NASDAQ:PFG – Get Free Report) and The Hartford Insurance Group (NYSE:HIG – Get Free Report) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.
Earnings & Valuation
This table compares Principal Financial Group 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 | |
| Principal Financial Group | $15.63 billion | 1.53 | $1.19 billion | $7.04 | 15.90 |
| The Hartford Insurance Group | $28.37 billion | 1.20 | $3.84 billion | $15.47 | 8.14 |
Analyst Ratings
This is a summary of recent recommendations for Principal Financial Group and The Hartford Insurance Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Principal Financial Group | 3 | 7 | 3 | 0 | 2.00 |
| The Hartford Insurance Group | 0 | 11 | 6 | 0 | 2.35 |
Principal Financial Group currently has a consensus target price of $109.08, suggesting a potential downside of 2.57%. The Hartford Insurance Group has a consensus target price of $149.07, suggesting a potential upside of 18.34%. Given The Hartford Insurance Group’s stronger consensus rating and higher probable upside, analysts clearly believe The Hartford Insurance Group is more favorable than Principal Financial Group.
Insider & Institutional Ownership
75.1% of Principal Financial Group shares are held by institutional investors. Comparatively, 93.4% of The Hartford Insurance Group shares are held by institutional investors. 1.1% of Principal Financial Group 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, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Principal Financial Group and The Hartford Insurance Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Principal Financial Group | 9.93% | 16.49% | 0.58% |
| The Hartford Insurance Group | 15.00% | 21.66% | 4.68% |
Dividends
Principal Financial Group pays an annual dividend of $3.36 per share and has a dividend yield of 3.0%. The Hartford Insurance Group pays an annual dividend of $2.40 per share and has a dividend yield of 1.9%. Principal Financial Group pays out 47.7% 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. Principal Financial Group has increased its dividend for 2 consecutive years and The Hartford Insurance Group has increased its dividend for 12 consecutive years.
Volatility & Risk
Principal Financial Group has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, The Hartford Insurance Group has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.
Summary
The Hartford Insurance Group beats Principal Financial Group on 13 of the 17 factors compared between the two stocks.
About Principal Financial Group
Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Retirement and Income Solutions, Principal Global Investors, Principal International, and U.S. Insurance Solutions segments. The Retirement and Income Solutions segment provides a portfolio of asset accumulation products and services for retirement savings and income. It offers products and services for defined contribution plans, including 401(k) and 403(b) plans, defined benefit pension plans, nonqualified executive benefit plans, employee stock ownership plans, equity compensation, and pension risk transfer services; individual retirement accounts; investment only products; and mutual funds, individual variable annuities, and bank products. The Principal Global Investors segment provides equity, fixed income, real estate, and other alternative investments, as well as asset allocation, stable value management, and other structured investment strategies. The Principal International segment offers pension accumulation products and services, mutual funds, asset management, income annuities, and life insurance accumulation products, as well as voluntary savings plans in Brazil, Chile, Mexico, China, Hong Kong Special Administrative Region, India, and Southeast Asia. The U.S. Insurance Solutions segment provides specialty benefits, such as group dental and vision insurance, group life insurance, and group and individual disability insurance, as well as administers group dental, disability, and vision benefits; and individual life insurance products comprising universal, variable universal, indexed universal, and term life insurance products in the United States. It also offers insurance solutions for small and medium-sized businesses and their owners, as well as executives. Principal Financial Group, Inc. was founded in 1879 and is based in Des Moines, Iowa.
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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