Crawford & (NYSE: CRD.B) and Hartford Financial Services Group, Inc. (The) (NYSE:HIG) are both multiline insurance & brokers – nec companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current recommendations for Crawford & and Hartford Financial Services Group, Inc. (The), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Crawford & 0 0 0 0 N/A
Hartford Financial Services Group, Inc. (The) 0 5 6 0 2.55

Hartford Financial Services Group, Inc. (The) has a consensus target price of $56.60, indicating a potential upside of 2.44%. Given Hartford Financial Services Group, Inc. (The)’s higher probable upside, analysts plainly believe Hartford Financial Services Group, Inc. (The) is more favorable than Crawford &.

Earnings & Valuation

This table compares Crawford & and Hartford Financial Services Group, Inc. (The)’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Crawford & $1.18 billion 0.42 $35.96 million $0.66 13.56
Hartford Financial Services Group, Inc. (The) $18.30 billion 1.08 $896.00 million $1.31 42.18

Hartford Financial Services Group, Inc. (The) has higher revenue and earnings than Crawford &. Crawford & is trading at a lower price-to-earnings ratio than Hartford Financial Services Group, Inc. (The), indicating that it is currently the more affordable of the two stocks.

Dividends

Crawford & pays an annual dividend of $0.20 per share and has a dividend yield of 2.2%. Hartford Financial Services Group, Inc. (The) pays an annual dividend of $0.92 per share and has a dividend yield of 1.7%. Crawford & pays out 30.3% of its earnings in the form of a dividend. Hartford Financial Services Group, Inc. (The) pays out 70.2% 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. Crawford & has raised its dividend for 4 consecutive years. Crawford & is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Crawford & has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500. Comparatively, Hartford Financial Services Group, Inc. (The) has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Institutional and Insider Ownership

16.8% of Crawford & shares are owned by institutional investors. Comparatively, 90.2% of Hartford Financial Services Group, Inc. (The) shares are owned by institutional investors. 51.0% of Crawford & shares are owned by insiders. Comparatively, 1.5% of Hartford Financial Services Group, Inc. (The) shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Crawford & and Hartford Financial Services Group, Inc. (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Crawford & 3.27% 25.66% 5.70%
Hartford Financial Services Group, Inc. (The) 2.63% 8.21% 0.62%

About Crawford &

Crawford & Company (Crawford) is an independent provider of claims management solutions to insurance and self-insured entities. The Company’s Crawford Solution offers claims services, business process outsourcing and consulting services for various product lines, including property and casualty claims management; workers’ compensation claims and medical management, and legal settlement administration. Crawford conducts its operations through four segments: U.S. Services, which primarily serves the property and casualty insurance company markets in the United States; International, which serves the property and casualty insurance company, and self-insurance markets outside the United States; Broadspire, which serves the self-insurance marketplace, primarily in the United States, and Garden City Group, which serves the class action, regulatory, mass tort, bankruptcy and other legal settlement markets, primarily in the United States.

About Hartford Financial Services Group, Inc. (The)

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.

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