Horace Mann Educators (NYSE:HMN) vs. Fidelis Insurance (NYSE:FIHL) Head-To-Head Review

Horace Mann Educators (NYSE:HMN) and Fidelis Insurance (NYSE:FIHL) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Horace Mann Educators and Fidelis Insurance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Horace Mann Educators	0	3	0	1	2.50
Fidelis Insurance	1	2	4	0	2.43

Horace Mann Educators currently has a consensus target price of $46.33, indicating a potential upside of 13.19%. Fidelis Insurance has a consensus target price of $20.67, indicating a potential upside of 30.55%. Given Fidelis Insurance’s higher probable upside, analysts plainly believe Fidelis Insurance is more favorable than Horace Mann Educators.

Volatility & Risk

Horace Mann Educators has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, Fidelis Insurance has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500.

Dividends

Horace Mann Educators pays an annual dividend of $1.40 per share and has a dividend yield of 3.4%. Fidelis Insurance pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. Horace Mann Educators pays out 50.7% of its earnings in the form of a dividend. Fidelis Insurance pays out -307.7% 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. Horace Mann Educators has raised its dividend for 17 consecutive years. Horace Mann Educators is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

99.3% of Horace Mann Educators shares are owned by institutional investors. Comparatively, 82.0% of Fidelis Insurance shares are owned by institutional investors. 3.8% of Horace Mann Educators shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Horace Mann Educators and Fidelis Insurance”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Horace Mann Educators	$1.60 billion	1.05	$102.80 million	$2.76	14.83
Fidelis Insurance	$2.42 billion	0.72	$113.30 million	($0.13)	-121.77

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

Profitability

This table compares Horace Mann Educators and Fidelis Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Horace Mann Educators	7.04%	11.86%	1.05%
Fidelis Insurance	-0.41%	0.20%	0.04%

Summary

Horace Mann Educators beats Fidelis Insurance on 12 of the 17 factors compared between the two stocks.

About Horace Mann Educators

Horace Mann Educators Corporation, together with its subsidiaries, operates as an insurance holding company in the United States. The company operates through Property & Casualty, Life & Retirement, and Supplemental & Group Benefits segments. Its Property & Casualty segment offers insurance products, including private passenger auto insurance, residential home insurance, and personal umbrella insurance; and provides auto coverages including liability and collision, and property coverage for homeowners and renters. The Life & Retirement segment markets tax-qualified fixed, fixed indexed, and variable annuities; and internal revenue code for educator, which allows public school employees and employees of other tax-exempt organizations, such as not-for-profit private schools, to utilize pretax income to make periodic contributions to a qualified retirement plan. The Supplemental & Group Benefits segment offers employer-sponsored products including accident, critical illness, limited-benefit fixed indemnity insurance, term life, and short-term and long-term disability, as well as worksite direct products, such as supplemental heart, cancer, disability, and accident coverage. The company was founded in 1945 and is headquartered in Springfield, Illinois.

About Fidelis Insurance

Fidelis Insurance Holdings Limited, a specialty insurer, provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, as well as other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.