Heritage Insurance (NYSE:HRTG – Get Free Report) and Jackson Financial (NYSE:JXN – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Institutional and Insider Ownership
59.0% of Heritage Insurance shares are owned by institutional investors. Comparatively, 90.0% of Jackson Financial shares are owned by institutional investors. 9.2% of Heritage Insurance shares are owned by insiders. Comparatively, 1.4% of Jackson Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Heritage Insurance has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Jackson Financial has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.
Earnings and Valuation
This table compares Heritage Insurance and Jackson Financial”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Heritage Insurance | $847.33 million | 1.25 | $195.59 million | $7.11 | 5.01 |
| Jackson Financial | $6.68 billion | 1.37 | $27.00 million | $0.71 | 189.80 |
Heritage Insurance has higher earnings, but lower revenue than Jackson Financial. Heritage Insurance is trading at a lower price-to-earnings ratio than Jackson Financial, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Heritage Insurance and Jackson Financial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Heritage Insurance | 0 | 3 | 3 | 0 | 2.50 |
| Jackson Financial | 0 | 4 | 2 | 0 | 2.33 |
Heritage Insurance presently has a consensus price target of $37.50, suggesting a potential upside of 5.25%. Jackson Financial has a consensus price target of $134.20, suggesting a potential downside of 0.42%. Given Heritage Insurance’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Heritage Insurance is more favorable than Jackson Financial.
Profitability
This table compares Heritage Insurance and Jackson Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Heritage Insurance | 25.07% | 40.67% | 9.72% |
| Jackson Financial | 1.59% | 18.93% | 0.52% |
Summary
Heritage Insurance beats Jackson Financial on 9 of the 14 factors compared between the two stocks.
About Heritage Insurance
Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products. The company offers personal residential insurance in Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia; commercial residential insurance for properties in Florida, New Jersey, and New York; and licensed in the state of Pennsylvania, as well as personal residential and wind-only property insurance. It also provides restoration, emergency, and recovery services; property management, and reinsurance services; homeowners insurance products, including single-family, homeowners or duplex, and condominium owners; and dwelling fire insurance policies. In addition, the company provides personal line policies through a network of retail independent agents, wholesale agents, and a partnership with a direct agency, as well as distribute indirectly to retail locations through wholesale agency relationships. Further, it offers personal and commercial insurance policies through a network of independent agencies. The company was founded in 2012 and is headquartered in Tampa, Florida.
About Jackson Financial
Jackson Financial Inc., through its subsidiaries, provides suite of annuities to retail investors in the United States. The company operates through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The Retail Annuities segment offers various retirement income and savings products, including variable, fixed index, fixed, and payout annuities, as well as registered index-linked annuities and lifetime income solutions. The Institutional Products segment provides traditional guaranteed investment contracts; funding agreements comprising agreements issued in conjunction with its participation in the U.S. federal home loan bank program; and medium-term funding agreement-backed notes. The Closed Life and Annuity Blocks segment offers various protection products, such as whole life, universal life, variable universal life, and term life insurance products, as well as fixed, fixed index, and payout annuities; and a block of group payout annuities. The company also offers investment management services. It sells its products through a distribution network that includes independent broker-dealers, wirehouses, regional broker-dealers, banks, independent registered investment advisors, third-party platforms, and insurance agents. The company was formerly known as Brooke (Holdco1) Inc. and changed its name to Jackson Financial Inc. in July 2020. Jackson Financial Inc. was incorporated in 2006 and is headquartered in Lansing, Michigan.
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