Metromile (NASDAQ:MILE) vs. The Hanover Insurance Group (NYSE:THG) Critical Survey

Metromile (NASDAQ:MILEGet Rating) and The Hanover Insurance Group (NYSE:THGGet Rating) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for Metromile and The Hanover Insurance Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Metromile 0 2 0 0 2.00
The Hanover Insurance Group 0 2 1 0 2.33

Metromile currently has a consensus price target of $4.53, indicating a potential upside of 330.95%. The Hanover Insurance Group has a consensus price target of $149.50, indicating a potential upside of 6.10%. Given Metromile’s higher possible upside, research analysts clearly believe Metromile is more favorable than The Hanover Insurance Group.

Risk and Volatility

Metromile has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, The Hanover Insurance Group has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Insider and Institutional Ownership

62.5% of Metromile shares are owned by institutional investors. Comparatively, 84.7% of The Hanover Insurance Group shares are owned by institutional investors. 2.5% of The Hanover Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Metromile -130.53% -57.64% -35.26%
The Hanover Insurance Group 8.16% 12.25% 2.68%

Valuation & Earnings

This table compares Metromile and The Hanover Insurance Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Metromile $104.90 million 1.31 -$216.46 million ($1.81) -0.58
The Hanover Insurance Group $5.23 billion 0.96 $418.70 million $11.89 11.85

The Hanover Insurance Group has higher revenue and earnings than Metromile. Metromile 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 Metromile on 12 of the 14 factors compared between the two stocks.

About Metromile

(Get Rating)

Metromile, Inc. provides insurance policies for automobile owners in the United States. It operates through two segments, Insurance Services and Enterprise Business Solutions. The company offers pay-per-mile auto insurance policies. It also provides The Pulse, a device that plugs into the diagnostic port of its customer's car and transmits data, such as miles driven, driving habits, phone use, speeding, hard braking, accelerating, cornering, and location over wireless cellular networks. In addition, the company offers access to its technology under software as a service arrangement, as well as professional services to third-party customers. Metromile, Inc. was founded in 2011 and is headquartered in San Francisco, California.

About The Hanover Insurance Group

(Get Rating)

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 three segments: Commercial Lines, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, and workers' compensation insurance products, as well as management and professional liability, marine, specialty industrial and commercial property, monoline general liability, surety, umbrella, fidelity, crime, and other commercial coverages. The Personal Lines segment provides 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 management services to institutions, 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.

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