Reviewing Hagerty (NYSE:HGTY) & NMI (NASDAQ:NMIH)

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

Profitability

This table compares Hagerty and NMI’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%
NMI	55.05%	15.78%	10.64%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hagerty	$1.46 billion	2.62	$49.02 million	$0.33	33.70
NMI	$706.44 million	4.16	$388.93 million	$4.91	7.86

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

Hagerty has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, NMI has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Hagerty and NMI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hagerty	0	4	4	0	2.50
NMI	0	1	4	0	2.80

Hagerty presently has a consensus target price of $13.71, indicating a potential upside of 23.33%. NMI has a consensus target price of $43.20, indicating a potential upside of 11.89%. Given Hagerty’s higher possible upside, analysts plainly believe Hagerty is more favorable than NMI.

Insider & Institutional Ownership

20.5% of Hagerty shares are owned by institutional investors. Comparatively, 94.1% of NMI shares are owned by institutional investors. 16.7% of Hagerty shares are owned by company insiders. Comparatively, 2.4% of NMI shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

NMI beats Hagerty on 7 of the 13 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 NMI

NMI Holdings, Inc. provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services, such as primary and pool insurance; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders. The company was incorporated in 2011 and is headquartered in Emeryville, California.