Comparing Hagerty (NYSE:HGTY) and Selective Insurance Group (NASDAQ:SIGI)

Selective Insurance Group (NASDAQ:SIGI) and Hagerty (NYSE:HGTY) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Earnings & Valuation

This table compares Selective Insurance Group and Hagerty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Selective Insurance Group	$5.34 billion	0.86	$466.41 million	$7.49	10.22
Hagerty	$1.46 billion	2.44	$49.02 million	$0.33	31.44

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

Volatility & Risk

Selective Insurance Group has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500. Comparatively, Hagerty has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Selective Insurance Group and Hagerty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Selective Insurance Group	1	5	1	0	2.00
Hagerty	0	4	4	0	2.50

Selective Insurance Group presently has a consensus price target of $83.00, indicating a potential upside of 8.41%. Hagerty has a consensus price target of $14.00, indicating a potential upside of 34.94%. Given Hagerty’s stronger consensus rating and higher probable upside, analysts plainly believe Hagerty is more favorable than Selective Insurance Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Selective Insurance Group	8.74%	14.23%	3.13%
Hagerty	5.98%	16.24%	4.81%

Insider and Institutional Ownership

82.9% of Selective Insurance Group shares are owned by institutional investors. Comparatively, 20.5% of Hagerty shares are owned by institutional investors. 1.0% of Selective Insurance Group shares are owned by company insiders. Comparatively, 16.7% of Hagerty shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Hagerty beats Selective Insurance Group on 9 of the 14 factors compared between the two stocks.

About Selective Insurance Group

Selective Insurance Group, Inc., together with its subsidiaries, provides insurance products and services in the United States. The company operates through four segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. It offers casualty insurance products that covers the financial consequences of employee injuries in the course of employment and bodily injury and/or property damage to a third party; property insurance products, which covers the accidental loss of an insured's real property, personal property, and/or earnings due to the property's loss; and flood insurance products. The company also invests in fixed income investments and commercial mortgage loans, as well as equity securities, short-term investments, and alternative investments, and other investments. It offers its insurance products and services to businesses, non-profit organizations, local government agencies, and individuals through independent retail agents and wholesale general agents. The company was founded in 1926 and is headquartered in Branchville, New Jersey.

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.