Critical Contrast: RenaissanceRe (NYSE:RNR) & Hamilton Insurance Group (NYSE:HG)

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

Institutional & Insider Ownership

100.0% of RenaissanceRe shares are owned by institutional investors. Comparatively, 29.2% of Hamilton Insurance Group shares are owned by institutional investors. 2.3% of RenaissanceRe shares are owned by insiders. Comparatively, 3.0% of Hamilton Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RenaissanceRe	$12.85 billion	1.09	$2.68 billion	$34.78	9.97
Hamilton Insurance Group	$2.91 billion	1.25	$576.67 million	$5.23	7.05

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

Analyst Ratings

This is a summary of recent ratings and target prices for RenaissanceRe and Hamilton Insurance Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RenaissanceRe	1	12	5	0	2.22
Hamilton Insurance Group	0	3	4	2	2.89

RenaissanceRe presently has a consensus price target of $343.69, indicating a potential downside of 0.88%. Hamilton Insurance Group has a consensus price target of $36.62, indicating a potential downside of 0.72%. Given Hamilton Insurance Group’s stronger consensus rating and higher probable upside, analysts clearly believe Hamilton Insurance Group is more favorable than RenaissanceRe.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RenaissanceRe	16.25%	21.13%	4.21%
Hamilton Insurance Group	16.83%	23.76%	6.64%

Risk and Volatility

RenaissanceRe has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, Hamilton Insurance Group has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.

Summary

Hamilton Insurance Group beats RenaissanceRe on 9 of the 15 factors compared between the two stocks.

About RenaissanceRe

RenaissanceRe Holdings Ltd., together with its subsidiaries, provides reinsurance and insurance products in the United States and internationally. The company operates through Property, and Casualty and Specialty segments. The Property segment writes property catastrophe excess of loss reinsurance and excess of loss reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, including hurricanes, earthquakes, typhoons, and tsunamis, as well as winter storms, freezes, floods, fires, windstorms, tornadoes, explosions, and acts of terrorism; and other property class of products, such as proportional reinsurance, property per risk, property reinsurance, binding facilities, and regional U.S. multi-line reinsurance. The Casualty and Specialty segment writes various classes of products, such as directors and officers, medical malpractice, and professional indemnity; automobile and employer’s liability, casualty clash, umbrella or excess casualty, workers’ compensation, and general liability; financial and mortgage guaranty, political risk, surety, and trade credit; and accident and health, agriculture, aviation, cyber, energy, marine, satellite, and terrorism. It distributes products and services primarily through intermediaries. The company invests in and manages funds. RenaissanceRe Holdings Ltd. was founded in 1993 and is headquartered in Pembroke, Bermuda.

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.