UTG (OTCMKTS:UTGN) & The Hanover Insurance Group (NYSE:THG) Critical Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
The Hanover Insurance Group	11.17%	21.72%	4.61%
UTG	N/A	11.75%	5.55%

Analyst Recommendations

This is a summary of current recommendations and price targets for The Hanover Insurance Group and UTG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hanover Insurance Group	0	6	3	1	2.50
UTG	0	0	0	0	0.00

The Hanover Insurance Group currently has a consensus price target of $223.29, indicating a potential downside of 3.83%. Given The Hanover Insurance Group’s stronger consensus rating and higher probable upside, analysts plainly believe The Hanover Insurance Group is more favorable than UTG.

Insider and Institutional Ownership

86.6% of The Hanover Insurance Group shares are owned by institutional investors. Comparatively, 0.1% of UTG shares are owned by institutional investors. 2.8% of The Hanover Insurance Group shares are owned by insiders. Comparatively, 74.2% of UTG shares are owned 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.

Volatility & Risk

The Hanover Insurance Group has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500. Comparatively, UTG has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500.

Valuation & Earnings

This table compares The Hanover Insurance Group and UTG”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Hanover Insurance Group	$6.59 billion	1.23	$662.50 million	$20.95	11.08
UTG	$42.35 million	4.30	$17.08 million	$8.79	6.60

The Hanover Insurance Group has higher revenue and earnings than UTG. UTG is trading at a lower price-to-earnings ratio than The Hanover Insurance Group, indicating that it is currently the more affordable of the two stocks.

Summary

The Hanover Insurance Group beats UTG on 12 of the 15 factors compared between the two stocks.

About The 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 through four segments: Core Commercial, Specialty, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, workers' compensation, and other commercial lines coverage. The Specialty segment provides professional and executive Lines, marine, and surety and other, as well as specialty property and casualty, such as program business, specialty industrial business, excess and surplus business, and specialty general liability coverage. The Personal Lines segment offers personal automobile and homeowner's coverages, as well as other personal coverages, such as personal umbrella, inland marine, fire, personal watercraft, personal cyber, and other miscellaneous coverages. The Other segment markets investment advisory services to institutions, insurance companies, pension funds, and other organizations. The Hanover Insurance Group, Inc. markets its products and services through independent agents and brokers. The company was formerly known as Allmerica Financial Corp. and changed its name to The Hanover Insurance Group, Inc. in December 2005. The Hanover Insurance Group, Inc. was founded in 1852 and is headquartered in Worcester, Massachusetts.

About UTG

UTG, Inc., an insurance holding company, provides individual life insurance products and services in the United States. Its individual life insurance includes servicing of existing insurance business in-force; the acquisition of other companies in the insurance business; and the administration processing of life insurance business for other entities. In addition, it offers reinsurance products. UTG, Inc. was founded in 1966 and is headquartered in Stanford, Kentucky.