Head to Head Comparison: HCI Group (NYSE:HCI) versus Hamilton Insurance Group (NYSE:HG)

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

Analyst Ratings

This is a summary of current ratings for HCI Group and Hamilton Insurance Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HCI Group	0	1	3	0	2.75
Hamilton Insurance Group	0	1	4	0	2.80

HCI Group currently has a consensus price target of $156.25, indicating a potential downside of 5.79%. Hamilton Insurance Group has a consensus price target of $23.60, indicating a potential upside of 12.01%. Given Hamilton Insurance Group’s stronger consensus rating and higher probable upside, analysts plainly believe Hamilton Insurance Group is more favorable than HCI Group.

Risk & Volatility

HCI Group has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Hamilton Insurance Group has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Institutional and Insider Ownership

87.0% of HCI Group shares are owned by institutional investors. Comparatively, 29.2% of Hamilton Insurance Group shares are owned by institutional investors. 21.9% of HCI Group shares are owned by company insiders. Comparatively, 17.5% of Hamilton Insurance Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HCI Group	19.37%	34.17%	7.44%
Hamilton Insurance Group	21.88%	21.92%	6.70%

Earnings and Valuation

This table compares HCI Group 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
HCI Group	$760.09 million	2.52	$79.03 million	$10.34	16.04
Hamilton Insurance Group	$2.49 billion	0.86	$258.73 million	$3.03	6.95

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

Summary

HCI Group beats Hamilton Insurance Group on 8 of the 14 factors compared between the two stocks.

About HCI Group

HCI Group, Inc., together with its subsidiaries, engages in the property and casualty insurance, insurance management, reinsurance, real estate, and information technology businesses in Florida. It provides residential insurance products, such as homeowners, fire, flood, and wind-only insurance to homeowners, condominium owners, and tenants for properties, as well as offers reinsurance programs. The company also owns and operates waterfront properties and retail shopping centers, and an office building, as well as commercial properties for investment purposes. In addition, it designs and develops web-based applications and products for mobile devices, including SAMS, an online policy administration platform; Harmony, a policy administration platform; ClaimColony, an end-to-end claims management platform; and AtlasViewer, a mapping and data visualization platform. The company was formerly known as Homeowners Choice, Inc. and changed its name to HCI Group, Inc. in May 2013. HCI Group, Inc. was incorporated in 2006 and is headquartered in Tampa, Florida.

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.