Head to Head Survey: Progressive (NYSE:PGR) versus Hanover Insurance Group (NYSE:THG) – Riverton Roll

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

Dividends

Progressive pays an annual dividend of $0.40 per share and has a dividend yield of 0.6%. Hanover Insurance Group pays an annual dividend of $2.40 per share and has a dividend yield of 1.8%. Progressive pays out 9.0% of its earnings in the form of a dividend. Hanover Insurance Group pays out 35.3% 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.

Valuation and Earnings

This table compares Progressive and Hanover Insurance Groups top-line revenue, earnings per share (EPS) and valuation.

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

Profitability

This table compares Progressive and Hanover Insurance Groups net margins, return on equity and return on assets.

Institutional and Insider Ownership

78.2% of Progressive shares are owned by institutional investors. Comparatively, 84.9% of Hanover Insurance Group shares are owned by institutional investors. 0.4% of Progressive shares are owned by insiders. Comparatively, 1.7% of Hanover Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Progressive has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Hanover Insurance Group has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Progressive and Hanover Insurance Group, as provided by MarketBeat.

Progressive presently has a consensus target price of $82.36, suggesting a potential upside of 16.28%. Hanover Insurance Group has a consensus target price of $118.71, suggesting a potential downside of 11.15%. Given Progressives higher possible upside, equities analysts clearly believe Progressive is more favorable than Hanover Insurance Group.

Summary

Progressive beats Hanover Insurance Group on 9 of the 16 factors compared between the two stocks.

Progressive Company Profile

The Progressive Corporation, through its subsidiaries, provides personal and commercial auto insurance, residential property insurance, and other specialty property-casualty insurance and related services primarily in the United States. Its Personal Lines segment writes insurance for personal autos, and recreational and other vehicles. This segment's products include personal auto insurance; and special lines products, including insurance for motorcycles, ATVs, RVs, watercrafts, and snowmobiles. The company's Commercial Lines segment provides primary liability, physical damage, and other auto-related insurance for autos, vans, pick-up trucks, and dump trucks used by small businesses; tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses, and non-fleet long-haul operators; dump trucks, log trucks, and garbage trucks used by dirt, sand and gravel, logging, and coal-type businesses; tow trucks and wreckers used in towing services and gas/service station businesses; and non-fleet taxis, black-car services, and airport taxis. Its Property segment provides residential property insurance for homes, condos, manufactured homes, and renters, as well as offers personal umbrella insurance, and primary and excess flood insurance. The company also offers policy issuance and claims adjusting services; home, condominium, renters, and other insurance; and general liability and business owner's policies, and workers' compensation insurance. In addition, it offers reinsurance services. The Progressive Corporation sells its products and services through independent insurance agencies, as well as directly on Internet, and mobile devices, and over the phone. The company was founded in 1937 and is headquartered in Mayfield Village, Ohio.

Hanover Insurance Group Company Profile

The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States. The company operates in three segments: Commercial Lines, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, workers' compensation, umbrella, healthcare, mono-line general liability, and miscellaneous commercial property insurance products; and other commercial coverages, including inland marine, specialty program business, management and professional liability, surety, and specialty property. The Personal Lines segment provides personal automobile and homeowner's coverages, as well as other personal coverages, such as personal inland marine, umbrella, fire, personal watercraft, earthquake, and other miscellaneous coverages. The Other segment offers investment management and advisory services to institutions, pension funds, and other organizations. The company markets its products and services through independent agents and brokers. The Hanover Insurance Group, Inc. was founded in 1852 and is headquartered in Worcester, Massachusetts.

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Head to Head Survey: Progressive (NYSE:PGR) versus Hanover Insurance Group (NYSE:THG) - Riverton Roll