THG vs CNA

For growth investors, The Hanover Insurance Group, Inc.

(THG) is the stronger pick with 6. 1% revenue growth year-over-year, versus 5. 1% for CNA Financial Corporation (CNA). CNA Financial Corporation (CNA) offers the better valuation at 9. 3x trailing P/E (9. 1x forward), making it the more compelling value choice. Analysts rate The Hanover Insurance Group, Inc. (THG) a "Buy" — based on 22 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, CNA Financial Corporation (CNA) is the cheapest at 9.

3x versus The Hanover Insurance Group, Inc. at 10. 1x. On forward P/E, CNA Financial Corporation is actually cheaper at 9. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: CNA Financial Corporation wins at 0. 69x versus The Hanover Insurance Group, Inc. 's 0. 73x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, The Hanover Insurance Group, Inc.

(THG) delivered a total return of +43. 2%, compared to +27. 0% for CNA Financial Corporation (CNA). Over 10 years, the gap is even starker: THG returned +159. 9% versus CNA's +136. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), CNA Financial Corporation (CNA) is the lower-risk stock at 0.

24β versus The Hanover Insurance Group, Inc. 's 0. 29β — meaning THG is approximately 19% more volatile than CNA relative to the S&P 500. On balance sheet safety, CNA Financial Corporation (CNA) carries a lower debt/equity ratio of 26% versus 34% for The Hanover Insurance Group, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The Hanover Insurance Group, Inc.

(THG) is pulling ahead at 6. 1% versus 5. 1% for CNA Financial Corporation (CNA). On earnings-per-share growth, the picture is similar: The Hanover Insurance Group, Inc. grew EPS 58. 2% year-over-year, compared to 33. 2% for CNA Financial Corporation. Over a 3-year CAGR, CNA leads at 7. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

The Hanover Insurance Group, Inc.

(THG) is the more profitable company, earning 10. 0% net margin versus 8. 7% for CNA Financial Corporation — meaning it keeps 10. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: THG leads at 12. 8% versus 11. 0% for CNA. At the gross margin level — before operating expenses — THG leads at 43. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, CNA Financial Corporation (CNA) is the more undervalued stock at a PEG of 0. 69x versus The Hanover Insurance Group, Inc. 's 0. 73x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, CNA Financial Corporation (CNA) trades at 9. 1x forward P/E versus 10. 5x for The Hanover Insurance Group, Inc. — 1. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for THG: 8. 6% to $202. 33.

All stocks in this comparison pay dividends.

CNA Financial Corporation (CNA) offers the highest yield at 8. 8%, versus 2. 0% for The Hanover Insurance Group, Inc. (THG).

For long-horizon retirement investors, CNA Financial Corporation (CNA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

24), 8. 8% yield, +136. 4% 10Y return). Both have compounded well over 10 years (CNA: +136. 4%, THG: +159. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.