Head to Head Contrast: Hagerty (NYSE:HGTY) & RenaissanceRe (NYSE:RNR)

RenaissanceRe (NYSE:RNR) and Hagerty (NYSE:HGTY) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RenaissanceRe	$12.85 billion	1.07	$2.68 billion	$59.99	5.38
Hagerty	$1.46 billion	2.83	$49.02 million	$0.20	59.96

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RenaissanceRe	24.25%	24.01%	4.70%
Hagerty	5.11%	11.94%	3.61%

Risk & Volatility

RenaissanceRe has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500. Comparatively, Hagerty has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for RenaissanceRe and Hagerty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RenaissanceRe	1	11	5	0	2.24
Hagerty	0	5	4	0	2.44

RenaissanceRe currently has a consensus target price of $331.80, suggesting a potential upside of 2.76%. Hagerty has a consensus target price of $13.67, suggesting a potential upside of 13.96%. Given Hagerty’s stronger consensus rating and higher probable upside, analysts plainly believe Hagerty is more favorable than RenaissanceRe.

Insider and Institutional Ownership

100.0% of RenaissanceRe shares are held by institutional investors. Comparatively, 20.5% of Hagerty shares are held by institutional investors. 2.3% of RenaissanceRe shares are held by company insiders. Comparatively, 3.7% of Hagerty shares are held 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

RenaissanceRe beats Hagerty on 8 of the 14 factors compared between the two stocks.

About RenaissanceRe

RenaissanceRe Holdings Ltd., together with its subsidiaries, provides reinsurance and insurance products in the United States and internationally. The company operates through Property, and Casualty and Specialty segments. The Property segment writes property catastrophe excess of loss reinsurance and excess of loss reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, including hurricanes, earthquakes, typhoons, and tsunamis, as well as winter storms, freezes, floods, fires, windstorms, tornadoes, explosions, and acts of terrorism; and other property class of products, such as proportional reinsurance, property per risk, property reinsurance, binding facilities, and regional U.S. multi-line reinsurance. The Casualty and Specialty segment writes various classes of products, such as directors and officers, medical malpractice, and professional indemnity; automobile and employer’s liability, casualty clash, umbrella or excess casualty, workers’ compensation, and general liability; financial and mortgage guaranty, political risk, surety, and trade credit; and accident and health, agriculture, aviation, cyber, energy, marine, satellite, and terrorism. It distributes products and services primarily through intermediaries. The company invests in and manages funds. RenaissanceRe Holdings Ltd. was founded in 1993 and is headquartered in Pembroke, Bermuda.

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.