Critical Comparison: Cincinnati Financial (NASDAQ:CINF) vs. Hamilton Insurance Group (NYSE:HG)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cincinnati Financial	20.20%	9.10%	3.32%
Hamilton Insurance Group	21.45%	21.77%	6.52%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Cincinnati Financial and Hamilton Insurance Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cincinnati Financial	0	3	5	0	2.63
Hamilton Insurance Group	0	1	6	0	2.86

Cincinnati Financial presently has a consensus target price of $133.57, suggesting a potential downside of 1.66%. Hamilton Insurance Group has a consensus target price of $21.29, suggesting a potential upside of 19.18%. Given Hamilton Insurance Group’s stronger consensus rating and higher possible upside, analysts clearly believe Hamilton Insurance Group is more favorable than Cincinnati Financial.

Institutional and Insider Ownership

65.2% of Cincinnati Financial shares are held by institutional investors. Comparatively, 29.2% of Hamilton Insurance Group shares are held by institutional investors. 2.8% of Cincinnati Financial shares are held by company insiders. Comparatively, 2.7% of Hamilton Insurance Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Cincinnati Financial and Hamilton Insurance Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cincinnati Financial	$10.01 billion	2.12	$1.84 billion	$15.03	9.04
Hamilton Insurance Group	$1.57 billion	1.16	$258.73 million	$3.29	5.43

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

Summary

Cincinnati Financial beats Hamilton Insurance Group on 7 of the 13 factors compared between the two stocks.

About Cincinnati Financial

Cincinnati Financial Corporation, together with its subsidiaries, provides property casualty insurance products in the United States. It operates through five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. The Commercial Lines Insurance segment offers coverage for commercial casualty, commercial property, commercial auto, and workers' compensation. It also provides contract and commercial surety bonds, and fidelity bonds; and machinery and equipment. The Personal Lines Insurance segment offers personal auto insurance; homeowner insurance; and dwelling fire, inland marine, personal umbrella liability, and watercraft coverages to individuals. The Excess and Surplus Lines Insurance segment offers commercial casualty insurance that covers businesses for third-party liability from accidents occurring on their premises or arising out of their operations, such as injuries sustained from products, as well as other coverages, including miscellaneous errors and omissions, professional liability, and excess liability; and commercial property insurance, which insures buildings, inventory, equipment, and business income from loss or damage due to various causes, such as fire, wind, hail, water, theft, and vandalism. The Life Insurance segment provides term life insurance products; universal life insurance products; worksite products, such as term life; and whole life insurance products, as well as annuities. The Investments segment invests in fixed-maturity investments, including taxable and tax-exempt bonds, redeemable preferred stocks, and mortgage-backed securities; and equity investments comprising common and nonredeemable preferred stocks. It also offers commercial leasing and financing services; and insurance brokerage services. Cincinnati Financial Corporation was founded in 1950 and is headquartered in Fairfield, Ohio.

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.