The Hanover Insurance Group (NYSE:THG) versus NI (NASDAQ:NODK) Head-To-Head Analysis

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

Earnings & Valuation

This table compares NI and The Hanover Insurance Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NI	$285.05 million	0.93	-$10.41 million	($0.49)	-26.39
The Hanover Insurance Group	$6.59 billion	0.92	$662.50 million	$18.17	9.49

The Hanover Insurance Group has higher revenue and earnings than NI. NI 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.

Volatility and Risk

NI has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, The Hanover Insurance Group has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500.

Insider and Institutional Ownership

21.9% of NI shares are held by institutional investors. Comparatively, 86.6% of The Hanover Insurance Group shares are held by institutional investors. 1.2% of NI shares are held by company insiders. Comparatively, 2.5% of The Hanover Insurance Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NI	-3.65%	-4.24%	-1.90%
The Hanover Insurance Group	10.05%	21.00%	4.29%

Analyst Ratings

This is a summary of current recommendations and price targets for NI and The Hanover Insurance Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NI	1	0	0	0	1.00
The Hanover Insurance Group	0	2	5	0	2.71

The Hanover Insurance Group has a consensus target price of $200.60, suggesting a potential upside of 16.29%. Given The Hanover Insurance Group’s stronger consensus rating and higher possible upside, analysts plainly believe The Hanover Insurance Group is more favorable than NI.

Summary

The Hanover Insurance Group beats NI on 12 of the 14 factors compared between the two stocks.

About NI

NI Holdings, Inc. underwrites property and casualty insurance products in the United States. Its products include private passenger auto, non-standard automobile, homeowners, farm owners, crop hail and multi-peril crop, and liability insurance policies. The company was founded in 1946 and is headquartered in Fargo, North Dakota. NI Holdings, Inc. operates as a subsidiary of Nodak Mutual Group, Inc.

About The Hanover Insurance Group

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 four segments: Core Commercial, Specialty, Personal Lines, and Other. The Commercial Lines segment offers commercial multiple peril, commercial automobile, workers' compensation, and other commercial lines coverage. The Specialty segment provides professional and executive Lines, marine, and surety and other, as well as specialty property and casualty, such as program business, specialty industrial business, excess and surplus business, and specialty general liability coverage. The Personal Lines segment offers 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 advisory services to institutions, insurance companies, 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.