Globe Life (NYSE:GL – Get Free Report) and Hagerty (NYSE:HGTY – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Risk and Volatility
Globe Life has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Hagerty has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.
Institutional & Insider Ownership
81.6% of Globe Life shares are held by institutional investors. Comparatively, 20.5% of Hagerty shares are held by institutional investors. 2.1% of Globe Life shares are held by insiders. Comparatively, 3.7% of Hagerty shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Globe Life | 19.58% | 20.52% | 3.96% |
| Hagerty | 1.81% | 5.15% | 1.58% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Globe Life and Hagerty, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Globe Life | 0 | 2 | 8 | 1 | 2.91 |
| Hagerty | 0 | 5 | 3 | 1 | 2.56 |
Globe Life currently has a consensus target price of $191.67, suggesting a potential upside of 10.06%. Hagerty has a consensus target price of $14.00, suggesting a potential upside of 3.17%. Given Globe Life’s stronger consensus rating and higher probable upside, equities analysts clearly believe Globe Life is more favorable than Hagerty.
Earnings and Valuation
This table compares Globe Life and Hagerty”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Globe Life | $5.99 billion | 2.23 | $1.16 billion | $15.06 | 11.56 |
| Hagerty | $1.46 billion | 3.20 | $49.02 million | $0.09 | 150.78 |
Globe Life has higher revenue and earnings than Hagerty. Globe Life is trading at a lower price-to-earnings ratio than Hagerty, indicating that it is currently the more affordable of the two stocks.
Summary
Globe Life beats Hagerty on 10 of the 14 factors compared between the two stocks.
About Globe Life
Globe Life Inc., through its subsidiaries, provides various life and supplemental health insurance products, and annuities to lower middle- and middle-income families in the United States. The company operates in four segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments. It offers whole, term, and other life insurance products; Medicare supplement and supplemental health insurance products, such as accident, cancer, critical illness, heart, and intensive care plans; and single-premium and flexible-premium deferred annuities. The company sells its products through its direct to consumer division, exclusive agencies, and independent agents. The company was formerly known as Torchmark Corporation and changed its name to Globe Life Inc. in August 2019. Globe Life Inc. was founded in 1900 and is headquartered in McKinney, Texas.
About Hagerty
Hagerty, Inc. provides insurance agency services worldwide. It offers motor vehicle and boat insurance products; and reinsurance products. The company provides Hagerty Media, which publishes contents through the Hagerty Drivers Club Magazine (HDC), video content, and social media channels; HDC that offers subscription based products and services, including HDC Magazine, automotive enthusiast events, proprietary vehicle valuation tools, emergency roadside services, and special vehicle-related discounts. In addition, it offers HVT, a valuation tool used by the customer to access current and historic pricing data of collector vehicle models. Further, the company offers Hagerty Garage + Social, a platform that provides clubhouses and car storage facilities. Hagerty, Inc. is headquartered in Traverse City, Michigan.
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