Hagerty (NYSE:HGTY) and United Fire Group (NASDAQ:UFCS) Critical Review

Hagerty (NYSE:HGTYGet Free Report) and United Fire Group (NASDAQ:UFCSGet Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Institutional & Insider Ownership

20.5% of Hagerty shares are held by institutional investors. Comparatively, 62.7% of United Fire Group shares are held by institutional investors. 16.7% of Hagerty shares are held by company insiders. Comparatively, 6.1% of United Fire Group shares are held by company 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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Hagerty and United Fire Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hagerty 0 4 5 0 2.56
United Fire Group 0 1 2 1 3.00

Hagerty currently has a consensus price target of $14.00, suggesting a potential upside of 10.85%. United Fire Group has a consensus price target of $37.50, suggesting a potential upside of 3.33%. Given Hagerty’s higher possible upside, equities research analysts plainly believe Hagerty is more favorable than United Fire Group.

Risk and Volatility

Hagerty has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, United Fire Group has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Valuation and Earnings

This table compares Hagerty and United Fire Group”s gross revenue, earnings per share (EPS) 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 45.11
United Fire Group $1.25 billion 0.74 $61.96 million $4.24 8.56

United Fire Group has higher revenue and earnings than Hagerty. United Fire Group is trading at a lower price-to-earnings ratio than Hagerty, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hagerty and United Fire Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hagerty 5.85% 16.85% 4.94%
United Fire Group 8.22% 13.64% 3.16%

Summary

Hagerty beats United Fire Group on 8 of the 15 factors compared between the two stocks.

About Hagerty

(Get Free Report)

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 United Fire Group

(Get Free Report)

United Fire Group, Inc., together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States. The company offers commercial and personal lines of property and casualty insurance; and reinsurance coverage for property and casualty insurance. Its commercial lines include fire and allied lines, other liability, automobile, workers’ compensation, fidelity and surety coverage, and other insurance products; and personal lines comprise automobile, and fire and allied lines coverage, including homeowners, as well as provides assumed reinsurance products. The company sells its products through a network of independent agencies. United Fire Group, Inc. was incorporated in 1946 and is headquartered in Cedar Rapids, Iowa.

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