Hagerty (NYSE:HGTY – Get Free Report) and Kingsway Financial Services (NYSE:KFS – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.
Earnings & Valuation
This table compares Hagerty and Kingsway Financial Services”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hagerty | $1.20 billion | 3.60 | $17.02 million | $0.28 | 45.12 |
| Kingsway Financial Services | $109.38 million | 3.35 | -$9.27 million | ($0.36) | -35.20 |
Institutional and Insider Ownership
20.5% of Hagerty shares are held by institutional investors. Comparatively, 72.4% of Kingsway Financial Services shares are held by institutional investors. 16.7% of Hagerty shares are held by insiders. Comparatively, 53.8% of Kingsway Financial Services shares are held 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.
Profitability
This table compares Hagerty and Kingsway Financial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hagerty | 5.85% | 16.85% | 4.94% |
| Kingsway Financial Services | -8.55% | -76.94% | -5.18% |
Analyst Recommendations
This is a summary of recent recommendations for Hagerty and Kingsway Financial Services, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hagerty | 1 | 4 | 5 | 0 | 2.40 |
| Kingsway Financial Services | 1 | 0 | 0 | 0 | 1.00 |
Hagerty presently has a consensus price target of $14.00, indicating a potential upside of 10.81%. Given Hagerty’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Hagerty is more favorable than Kingsway Financial Services.
Volatility & Risk
Hagerty has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Kingsway Financial Services has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.
Summary
Hagerty beats Kingsway Financial Services on 12 of the 14 factors compared between the two stocks.
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.
About Kingsway Financial Services
Kingsway Financial Services Inc., through its subsidiaries, engages in the extended warranty and business services in the United States. The company operates through two segments, Extended Warranty and Kingsway Search Xcelerator. The Extended Warranty segment markets, sells, and administers vehicle service agreements and related products for new and used automobiles, motorcycles, and ATVs. This segment also markets and distributes warranty products to manufacturers, distributors, and installers of heating, ventilation and air conditioning, standby generator, commercial LED lighting, and commercial refrigeration equipment; and provides equipment breakdown and maintenance support services to companies, as well as after-market vehicle protection services. The Kingsway Search Xcelerator offers outsourced finance and human resources consulting services, including operational accounting, such as bookkeeping, accounting, financial reporting, and analysis and strategic finance services; technical accounting comprising initial public offerings, Securities and Exchange Commission reporting, and international consolidation services; human resources, workforce management, and compliance support services; and advisory services. This segment also provides financial executive services for project and interim staffing engagements; search services for permanent placements; healthcare staffing services to acute healthcare facilities for short-term and day-to-day needs of hospitals; software products for the management needs of all types of shared-ownership properties; and fully managed outsourced cardiac telemetry services, as well as provides mobile monitors to the hospitals. The company offers its products and services through credit unions and dealers. Kingsway Financial Services Inc. was incorporated in 1989 and is headquartered in Chicago, Illinois.
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