Trupanion (NASDAQ:TRUP) versus Unum Group (NYSE:UNM) Critical Survey

Trupanion (NASDAQ:TRUP) and Unum Group (NYSE:UNM) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Insider & Institutional Ownership

86.6% of Unum Group shares are owned by institutional investors. 5.4% of Trupanion shares are owned by insiders. Comparatively, 0.9% of Unum Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Trupanion and Unum Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trupanion	$1.29 billion	1.60	-$9.63 million	$0.26	183.65
Unum Group	$12.89 billion	0.92	$1.78 billion	$8.36	8.30

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

Volatility & Risk

Trupanion has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500. Comparatively, Unum Group has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Profitability

This table compares Trupanion and Unum Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trupanion	0.81%	3.31%	1.33%
Unum Group	11.77%	13.44%	2.38%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Trupanion and Unum Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trupanion	0	3	3	0	2.50
Unum Group	0	4	8	1	2.77

Trupanion currently has a consensus target price of $54.1667, indicating a potential upside of 13.44%. Unum Group has a consensus target price of $91.1538, indicating a potential upside of 31.36%. Given Unum Group’s stronger consensus rating and higher possible upside, analysts plainly believe Unum Group is more favorable than Trupanion.

Summary

Unum Group beats Trupanion on 11 of the 15 factors compared between the two stocks.

About Trupanion

Trupanion, Inc., together with its subsidiaries, provides medical insurance for cats and dogs on a monthly subscription basis in the United States, Canada, Continental Europe, and Australia. The company operates in two segments, Subscription Business and Other Business. It serves pet owners and veterinarians. The company was formerly known as Vetinsurance International, Inc. changed its name to Trupanion, Inc. in 2013. Trupanion, Inc. was founded in 2000 and is headquartered in Seattle, Washington.

About Unum Group

Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, Poland, and internationally. It operates through Unum US, Unum International, Colonial Life, and Closed Block segment. The company offers group long-term and short-term disability, group life, and accidental death and dismemberment products; supplemental and voluntary products, such as individual disability, voluntary benefits, and dental and vision products; and accident, sickness, disability, life, and cancer and critical illness products. It also provides group pension, individual life and corporate-owned life insurance, reinsurance pools and management operations, and other miscellaneous products. The company sells its products primarily to employers for the benefit of employees. It sells its products through field sales personnel, independent brokers, consultants, and independent contractor agent sales force and brokers. Unum Group was founded in 1848 and is based in Chattanooga, Tennessee.