Hagerty (NYSE:HGTY – Get Free Report) and American Coastal Insurance (NASDAQ:ACIC – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
Profitability
This table compares Hagerty and American Coastal Insurance’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% |
| American Coastal Insurance | 25.95% | 30.06% | 6.84% |
Earnings and Valuation
This table compares Hagerty and American Coastal Insurance”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hagerty | $1.20 billion | 3.90 | $17.02 million | $0.28 | 48.91 |
| American Coastal Insurance | $296.66 million | 1.92 | $75.72 million | $1.71 | 6.83 |
American Coastal Insurance has lower revenue, but higher earnings than Hagerty. American Coastal Insurance is trading at a lower price-to-earnings ratio than Hagerty, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
20.5% of Hagerty shares are owned by institutional investors. Comparatively, 22.1% of American Coastal Insurance shares are owned by institutional investors. 16.7% of Hagerty shares are owned by company insiders. Comparatively, 49.9% of American Coastal Insurance shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility & Risk
Hagerty has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, American Coastal Insurance has a beta of -0.49, indicating that its share price is 149% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Hagerty and American Coastal Insurance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hagerty | 1 | 4 | 5 | 0 | 2.40 |
| American Coastal Insurance | 0 | 1 | 0 | 0 | 2.00 |
Hagerty presently has a consensus target price of $14.00, suggesting a potential upside of 2.23%. Given Hagerty’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Hagerty is more favorable than American Coastal Insurance.
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 American Coastal Insurance
American Coastal Insurance Corporation operates as a property and casualty insurance holding company that sources, writes, and services residential personal and commercial property, and casualty insurance policies in the United States. The company offers structure, content, and liability coverage for standard single-family homeowners, renters, and condominium unit owners. It also provides commercial multi-peril property insurance for residential condominium associations and apartments, as well as loss or damage to buildings, inventory, and equipment caused by fire, wind, hail, water, theft, and vandalism. In addition, the company offers equipment breakdown, identity theft, cyber security, and flood policies. The company markets and distributes its products through a network of independent agencies. The company was formerly known as United Insurance Holdings Corp. and changed its name to American Coastal Insurance Corporation in August 2023. American Coastal Insurance Corporation was founded in 1999 and is headquartered in Saint Petersburg, Florida.
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