Loews (L) & Heritage Insurance (HRTG) Head to Head Contrast

Loews (NYSE: HRTG) and Heritage Insurance (NYSE:HRTG) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Institutional & Insider Ownership

62.4% of Loews shares are owned by institutional investors. Comparatively, 77.2% of Heritage Insurance shares are owned by institutional investors. 12.3% of Loews shares are owned by insiders. Comparatively, 25.3% of Heritage Insurance shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Loews and Heritage Insurance, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Loews 0 2 1 0 2.33
Heritage Insurance 0 1 4 0 2.80

Loews presently has a consensus target price of $53.57, suggesting a potential upside of 5.07%. Heritage Insurance has a consensus target price of $20.60, suggesting a potential upside of 32.31%. Given Heritage Insurance’s stronger consensus rating and higher probable upside, analysts plainly believe Heritage Insurance is more favorable than Loews.

Volatility and Risk

Loews has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Heritage Insurance has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Dividends

Loews pays an annual dividend of $0.25 per share and has a dividend yield of 0.5%. Heritage Insurance pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. Loews pays out 8.7% of its earnings in the form of a dividend. Heritage Insurance pays out 15.7% 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 earnings for the next several years.

Valuation and Earnings

This table compares Loews and Heritage Insurance’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Loews $13.74 billion 1.17 $1.16 billion $2.86 17.83
Heritage Insurance $406.62 million 1.02 -$1.11 million $1.53 10.18

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

Profitability

This table compares Loews and Heritage Insurance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Loews 8.15% 4.11% 1.21%
Heritage Insurance 0.79% 10.66% 2.15%

Summary

Heritage Insurance beats Loews on 9 of the 16 factors compared between the two stocks.

Loews Company Profile

Loews Corporation, through its subsidiaries, provides commercial property and casualty insurance in the United States, Canada, the United Kingdom, Continental Europe, and Singapore. The company offers management and professional liability insurance and risk management services, and other specialized property and casualty coverages; commercial surety and fidelity bonds; and warranty and alternative risk services primarily for vehicles and cell phones. Its commercial property insurance products include standard and excess property, marine, and boiler and machinery coverages; and casualty insurance products comprise workers' compensation, general and product liability, commercial auto, and umbrella coverages. The company also provides loss-sensitive insurance programs; and risk management, information, and claims administration services. It markets its insurance products and services primarily through independent agents, brokers, and managing general underwriters. In addition, the company owns and operates 17 offshore drilling rigs consisting of 4 drillships; and 7 ultra-deepwater, 4 deepwater, and 2 mid-water semisubmersible rigs. Further, it is involved in the transportation and storage of natural gas and natural gas liquids (NGLs). It owns and operates natural gas pipelines covering approximately 13,880 miles of interconnected pipelines; approximately 455 miles of NGL pipelines in Louisiana and Texas; and underground storage fields with aggregate working gas capacity of approximately 205.0 billion cubic feet of natural gas. Additionally, it operates 24 hotels in the United States and Canada. The company was founded in 1954 and is headquartered in New York, New York.

Heritage Insurance Company Profile

Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products. The company offers personal residential property insurance for single-family homeowners and condominium owners; rental property insurance; and commercial residential insurance, as well as residential wind-only property insurance in Alabama, Connecticut, Florida, Georgia, Hawaii, Massachusetts, New York, New Jersey, North Carolina, Rhode Island, and South Carolina. As of December 31, 2017, it had approximately 521,350 personal residential policies and 3,100 commercial residential policies. The company markets and writes its voluntary personal line policies through a network of retail independent agents, wholesale agents, and a partnership with a direct agency, as well as indirectly to approximately 1,500 retail locations through 8 wholesale agency relationships. It also provides restoration, and emergency and recovery services; and property management, retail agency, and reinsurance services. The company was founded in 2012 and is headquartered in Clearwater, Florida.

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