Heritage Insurance (NYSE:HRTG – 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.
Institutional & Insider Ownership
59.0% of Heritage Insurance shares are held by institutional investors. Comparatively, 20.5% of Hagerty shares are held by institutional investors. 15.2% of Heritage Insurance shares are held by insiders. Comparatively, 16.7% 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.
Valuation and Earnings
This table compares Heritage Insurance and Hagerty”s 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 | 0.79 | $195.59 million | $6.52 | 3.40 |
| Hagerty | $1.46 billion | 2.47 | $49.02 million | $0.20 | 52.35 |
Heritage Insurance has higher earnings, but lower revenue than Hagerty. Heritage Insurance is trading at a lower price-to-earnings ratio than Hagerty, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Heritage Insurance has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Hagerty has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.
Profitability
This table compares Heritage Insurance and Hagerty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Heritage Insurance | 23.76% | 43.68% | 8.84% |
| Hagerty | 5.11% | 11.94% | 3.61% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Heritage Insurance and Hagerty, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Heritage Insurance | 1 | 1 | 2 | 0 | 2.25 |
| Hagerty | 1 | 4 | 4 | 0 | 2.33 |
Heritage Insurance currently has a consensus target price of $36.00, suggesting a potential upside of 62.58%. Hagerty has a consensus target price of $13.38, suggesting a potential upside of 27.76%. Given Heritage Insurance’s higher probable upside, equities analysts clearly believe Heritage Insurance is more favorable than Hagerty.
Summary
Heritage Insurance beats Hagerty on 8 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 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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