Contrasting Chubb (NYSE:CB) and Hamilton Insurance Group (NYSE:HG)

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

Insider and Institutional Ownership

29.2% of Hamilton Insurance Group shares are held by institutional investors. Comparatively, 83.8% of Chubb shares are held by institutional investors. 3.0% of Hamilton Insurance Group shares are held by insiders. Comparatively, 0.4% of Chubb shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hamilton Insurance Group	$2.91 billion	1.16	$576.67 million	$5.74	5.94
Chubb	$59.40 billion	2.15	$10.31 billion	$28.27	11.71

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Hamilton Insurance Group and Chubb, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hamilton Insurance Group	0	4	4	1	2.67
Chubb	1	12	8	1	2.41

Hamilton Insurance Group currently has a consensus target price of $36.12, indicating a potential upside of 5.91%. Chubb has a consensus target price of $360.77, indicating a potential upside of 8.99%. Given Chubb’s higher probable upside, analysts plainly believe Chubb is more favorable than Hamilton Insurance Group.

Volatility & Risk

Hamilton Insurance Group has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, Chubb has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hamilton Insurance Group	19.56%	22.60%	6.47%
Chubb	18.10%	14.47%	4.19%

Summary

Chubb beats Hamilton Insurance Group on 8 of the 13 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 Chubb

Chubb Limited provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, casualty, workers' compensation, package policies, risk management, financial lines, marine, construction, environmental, medical risk, cyber risk, surety, and casualty; and group accident and health insurance to large, middle market, and small commercial businesses. Its North America Personal P&C Insurance segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, and recreational marine insurance and services. The company's North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm, ranch, and specialty property and casualty, and commercial agriculture products. Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction; and group accident and health, and traditional and specialty personal lines for corporations, middle markets, and small customers through retail brokers, agents, and other channels. The company's Global Reinsurance segment offers traditional and specialty reinsurance under the Chubb Tempest Re brand to property and casualty companies. Its Life Insurance segment provides protection and savings products comprising whole life, endowment plans, individual and life, group term life, health protection, personal accident, credit life, universal life, group employee benefits, and unit linked contracts. It markets its products primarily through insurance and reinsurance brokers. The company was formerly known as ACE Limited and changed its name to Chubb Limited in January 2016. Chubb Limited was incorporated in 1985 and is headquartered in Zurich, Switzerland.