Hagerty (NYSE:HGTY) versus Selective Insurance Group (NASDAQ:SIGI) Head to Head Contrast

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

Institutional & Insider Ownership

20.5% of Hagerty shares are owned by institutional investors. Comparatively, 82.9% of Selective Insurance Group shares are owned by institutional investors. 16.7% of Hagerty shares are owned by company insiders. Comparatively, 1.5% of Selective Insurance Group shares are owned by company 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.

Profitability

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

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

Valuation & Earnings

This table compares Hagerty and Selective Insurance Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hagerty	$1.46 billion	2.42	$49.02 million	$0.33	31.16
Selective Insurance Group	$5.34 billion	0.83	$466.41 million	$7.49	9.84

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 and Risk

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

Analyst Recommendations

This is a summary of recent recommendations for Hagerty and Selective Insurance Group, as reported by MarketBeat.com.

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

Hagerty presently has a consensus target price of $14.00, indicating a potential upside of 36.15%. Selective Insurance Group has a consensus target price of $83.00, indicating a potential upside of 12.57%. Given Hagerty’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Hagerty is more favorable than Selective Insurance Group.

Summary

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

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 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.