Comparison of Cincinnati Financial (NASDAQ:CINF) and Heritage Insurance (NYSE:HRTG)
Cincinnati Financial (NASDAQ:CINF – received rating) and inheritance insurance (NYSE:HRTG – received rating) are both financial companies, but which is the better investment? We will compare the two companies based on their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.
Rating & Result
This table compares the earnings, earnings per share (EPS) and valuation of Cincinnati Financial and Heritage Insurance.
|gross receipts||price/sales ratio||net income||earnings per share||price-earnings ratio|
|Cincinnati Financial||$9.63 billion||2.28||$2.95 billion||$18.11||7.55|
|inheritance insurance||$631.56 million||0.25||-$74.73 million||($2.71)||-2.20|
Cincinnati Financial has higher revenues and earnings than Heritage Insurance. Heritage Insurance is trading at a lower price-to-earnings multiple than Cincinnati Financial, suggesting it’s the cheaper of the two stocks right now.
Volatility & Risk
Cincinnati Financial has a beta of 0.63, suggesting its stock price is 37% less volatile than the S&P 500. In comparison, Heritage Insurance has a beta of 0.54, suggesting its stock price is 46% less is more volatile than the S&P 500.
This table compares Cincinnati Financial and Heritage Insurance’s net margins, return on equity, and return on assets.
|net margins||return on equity||return on investment|
Cincinnati Financial pays an annual dividend of $2.76 per share and has a dividend yield of 2.0%. Heritage Insurance pays an annual dividend of $0.24 per share and has a dividend yield of 4.0%. Cincinnati Financial pays out 15.2% of its earnings in the form of a dividend. Heritage Insurance pays out -8.9% 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 profits for the next several years. Cincinnati Financial has increased its dividend for 62 straight years. Heritage Insurance is clearly the better dividend stock due to its higher yield and lower payout ratio.
This is a breakdown of the current ratings and price targets for Cincinnati Financial and Heritage Insurance as reported by MarketBeat.com.
|sell reviews||keep ratings||Buy reviews||Strong buy recommendations||rating score|
Cincinnati Financial currently has a consensus price target of $126.00, indicating a potential downside of 7.80%. Heritage Insurance has a consensus price target of $12.00, indicating a potential upside of 101.68%. Given Heritage Insurance’s stronger consensus rating and higher potential upside, analysts clearly believe Heritage Insurance is cheaper than Cincinnati Financial.
Insider and Institutional Property
65.7% of Cincinnati Financial’s shares are held by institutional investors. In comparison, 60.9% of Heritage Insurance stock is held by institutional investors. 3.0% of Cincinnati Financial’s stock is held by company insiders. By comparison, 8.5% of Heritage Insurance’s shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large wealth managers, and endowments believe a company is poised for long-term growth.
Cincinnati Financial beats Heritage Insurance on 11 of the 17 factors compared between the two stocks.
Company Profile of Cincinnati Financial (received rating)
Cincinnati Financial Corporation, together with its subsidiaries, offers property and casualty insurance products in the United States. The Company operates through five segments: Commercial Lines Insurance, Private Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance and Investments. The Commercial Lines Insurance segment provides insurance coverage for commercial casualty insurance, commercial property insurance, commercial motor vehicle insurance and workers’ compensation insurance. It also provides directors’ and officers’ liability insurance, contract and commercial bonds, and bonds of confidence; and coverage of machinery and equipment. The Personal Lines Insurance segment offers personal auto insurance; Household insurance; and residential fire, inland waterway, personal umbrella liability and watercraft covers for individuals. The Excess and Surplus Lines Insurance segment provides commercial casualty insurance that covers businesses for liability insurance for accidents that occur on their premises or result from their operations, such as: B. Product Injuries; and commercial property insurance, which insures buildings, fixtures, equipment and business revenues against loss or damage from a variety of causes such as fire, wind, hail, water, theft and vandalism. The Life Insurance segment offers term life insurance products; universal life insurance products; construction site products such as B. Term; and whole life insurance products. The Investments segment invests in fixed-term investments, including taxable and tax-exempt bonds and redeemable preferred stock; and investments that include common stock and non-redeemable preferred stock. The company also offers commercial leasing and financing services; and insurance brokerage services. Cincinnati Financial Corporation was founded in 1950 and is headquartered in Fairfield, Ohio.
Company profile of inheritance insurance (received rating)
Heritage Insurance Holdings, Inc., through its subsidiaries, offers personal and commercial homeowners insurance products. The Company provides private homeowners insurance for single family homeowners, condominium owners and rental property insurance in the states of Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina and Virginia; commercial homeowners insurance for properties in Florida, New Jersey and New York; and licensed in the State of Pennsylvania, as well as personal residential and wind-only property insurance. It also offers recovery and emergency and recovery services. and property management and reinsurance services. The company writes personal insurance through a network of independent retail agents, wholesale agents and a direct agency partnership, and indirectly for approximately 1,500 retail locations through eight wholesale agency relationships; and personal and commercial insurance policies through a network of approximately 70 independent agencies. Heritage Insurance Holdings, Inc. was founded in 2012 and is headquartered in Tampa, Florida.
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