Analyzing Waterdrop (NYSE:WDH) & Hamilton Insurance Group (NYSE:HG)

Hamilton Insurance Group (NYSE:HG) and Waterdrop (NYSE:WDH) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Risk & Volatility

Hamilton Insurance Group has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Waterdrop has a beta of -0.26, meaning that its stock price is 126% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hamilton Insurance Group	15.95%	15.07%	4.46%
Waterdrop	15.58%	9.99%	7.57%

Insider and Institutional Ownership

29.2% of Hamilton Insurance Group shares are held by institutional investors. Comparatively, 2.0% of Waterdrop shares are held by institutional investors. 17.5% of Hamilton Insurance Group shares are held by insiders. Comparatively, 24.6% of Waterdrop shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Hamilton Insurance Group and Waterdrop, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hamilton Insurance Group	0	2	7	1	2.90
Waterdrop	0	2	0	0	2.00

Hamilton Insurance Group presently has a consensus target price of $29.13, suggesting a potential upside of 6.61%. Waterdrop has a consensus target price of $2.00, suggesting a potential upside of 5.54%. Given Hamilton Insurance Group’s stronger consensus rating and higher possible upside, analysts plainly believe Hamilton Insurance Group is more favorable than Waterdrop.

Valuation & Earnings

This table compares Hamilton Insurance Group and Waterdrop”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hamilton Insurance Group	$2.33 billion	1.15	$400.43 million	$4.20	6.50
Waterdrop	$379.74 million	1.81	$50.35 million	$0.19	9.97

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

Summary

Hamilton Insurance Group beats Waterdrop on 11 of the 15 factors compared between the two stocks.

About Hamilton Insurance Group

Hamilton Insurance Group, Ltd., through its subsidiaries, provides underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company operates Hamilton Global Specialty, Hamilton Select, and Hamilton Re underwriting platforms. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property reinsurance and insurance; and specialty reinsurance solutions, including accident and health, aviation and space, crisis management, mortgage, financial lines, marine and energy, and multiline specialty. In addition, it offers accident and health, cyber, energy, environmental, financial lines, fine art and specie, kidnap and ransom, mergers and acquisitions, marine and energy liability, political risk and violence, professional liability, property binders, property direct and facultative, professional lines, space, upstream energy, excess casualty, war and terrorism, allied medical, management liability, medical professionals, general liability, products liability and contractors, and small business casualty insurance plans, as well as surety and treaty reinsurance products. The company was incorporated in 2013 and is headquartered in Pembroke, Bermuda.

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.