Hagerty (NYSE:HGTY) versus Root (NASDAQ:ROOT) Head-To-Head Survey

Root (NASDAQ:ROOT) and Hagerty (NYSE:HGTY) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

59.8% of Root shares are owned by institutional investors. Comparatively, 20.5% of Hagerty shares are owned by institutional investors. 11.8% of Root shares are owned by insiders. Comparatively, 16.7% of Hagerty shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Root and Hagerty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Root	1	5	2	0	2.13
Hagerty	0	4	5	0	2.56

Root currently has a consensus price target of $121.60, suggesting a potential upside of 93.17%. Hagerty has a consensus price target of $14.13, suggesting a potential upside of 12.05%. Given Root’s higher probable upside, equities research analysts clearly believe Root is more favorable than Hagerty.

Valuation and Earnings

This table compares Root and Hagerty”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Root	$1.18 billion	0.83	$30.90 million	$3.31	19.02
Hagerty	$1.20 billion	3.59	$17.02 million	$0.28	45.02

Root has higher earnings, but lower revenue than Hagerty. Root 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

Root has a beta of 2.7, suggesting that its stock price is 170% more volatile than the S&P 500. Comparatively, Hagerty has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Profitability

This table compares Root and Hagerty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Root	3.80%	23.36%	3.49%
Hagerty	5.85%	16.85%	4.94%

Summary

Hagerty beats Root on 8 of the 14 factors compared between the two stocks.

About Root

Root, Inc. provides insurance products and services in the United States. The company offers automobile, homeowners, and renters insurance products. It operates a direct-to-consumer model; and serves customers primarily through mobile applications, as well as through its website. The company's direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies. Root, Inc. was incorporated in 2015 and is headquartered in Columbus, Ohio.

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.