CNA Financial (NYSE:CNA) and Hagerty (NYSE:HGTY) Head-To-Head Comparison

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

Earnings and Valuation

This table compares CNA Financial and Hagerty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CNA Financial	$14.27 billion	0.91	$959.00 million	$3.21	14.95
Hagerty	$1.20 billion	3.35	$17.02 million	$0.20	58.75

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CNA Financial and Hagerty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNA Financial	1	1	0	0	1.50
Hagerty	1	1	1	0	2.00

CNA Financial presently has a consensus target price of $50.50, suggesting a potential upside of 5.21%. Hagerty has a consensus target price of $12.67, suggesting a potential upside of 7.80%. Given Hagerty’s stronger consensus rating and higher probable upside, analysts plainly believe Hagerty is more favorable than CNA Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CNA Financial	5.99%	11.85%	1.85%
Hagerty	4.88%	13.76%	4.02%

Institutional and Insider Ownership

98.5% of CNA Financial shares are held by institutional investors. Comparatively, 20.5% of Hagerty shares are held by institutional investors. 0.4% of CNA Financial shares are held by insiders. Comparatively, 16.7% of Hagerty shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

CNA Financial has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Hagerty has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Summary

Hagerty beats CNA Financial on 9 of the 14 factors compared between the two stocks.

About CNA Financial

CNA Financial Corporation provides commercial property and casualty insurance products in the United States and internationally. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The company offers professional liability coverages and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, employment practices, fiduciary, and fidelity and cyber coverages to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products. It also provides property, marine, boiler, and machinery coverage insurance products; casualty insurance products comprising workers' compensation, general and product liability, commercial auto, umbrella, and excess and surplus coverages; specialized loss-sensitive insurance programs and total risk management services; and run-off long term care policies. The company was founded in 1853 and is based in Chicago, Illinois. CNA Financial Corporation operates as a subsidiary of Loews Corporation.

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.