Contrasting Waterdrop (NYSE:WDH) & The Hartford Insurance Group (NYSE:HIG)

The Hartford Insurance Group (NYSE:HIG) and Waterdrop (NYSE:WDH) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Institutional & Insider Ownership

93.4% of The Hartford Insurance Group shares are owned by institutional investors. Comparatively, 2.0% of Waterdrop shares are owned by institutional investors. 1.3% of The Hartford Insurance Group shares are owned by insiders. Comparatively, 24.6% of Waterdrop shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Hartford Insurance Group	$28.37 billion	1.26	$3.84 billion	$16.52	8.12
Waterdrop	$568.81 million	0.64	$81.36 million	$0.21	4.79

The Hartford Insurance Group has higher revenue and earnings than Waterdrop. Waterdrop 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for The Hartford Insurance Group and Waterdrop, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hartford Insurance Group	0	12	5	1	2.39
Waterdrop	1	0	0	0	1.00

The Hartford Insurance Group presently has a consensus price target of $144.69, suggesting a potential upside of 7.87%. Given The Hartford Insurance Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe The Hartford Insurance Group is more favorable than Waterdrop.

Volatility and Risk

The Hartford Insurance Group has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Waterdrop has a beta of -0.17, suggesting that its share price is 117% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
The Hartford Insurance Group	15.85%	20.93%	4.52%
Waterdrop	10.69%	10.47%	7.40%

Dividends

The Hartford Insurance Group pays an annual dividend of $2.40 per share and has a dividend yield of 1.8%. Waterdrop pays an annual dividend of $0.05 per share and has a dividend yield of 5.0%. The Hartford Insurance Group pays out 14.5% of its earnings in the form of a dividend. Waterdrop pays out 23.8% 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.

Summary

The Hartford Insurance Group beats Waterdrop on 15 of the 18 factors compared between the two stocks.

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.

About Waterdrop

Waterdrop Inc., through its subsidiaries, provides online insurance brokerage services to match and connect users with related insurance products underwritten by insurance companies in the People's Republic of China. The company offers short-term health and long-term health and life insurance products and services. It also operates a medical crowdfunding platform. Waterdrop Inc. was founded in 2016 and is headquartered in Beijing, the People's Republic of China.