Kinsale Capital Group (NYSE:KNSL) & Hagerty (NYSE:HGTY) Critical Analysis

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

Institutional and Insider Ownership

85.4% of Kinsale Capital Group shares are held by institutional investors. Comparatively, 20.5% of Hagerty shares are held by institutional investors. 5.5% of Kinsale Capital Group shares are held by company insiders. Comparatively, 16.7% of Hagerty shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kinsale Capital Group	26.30%	25.66%	7.94%
Hagerty	5.85%	16.85%	4.94%

Analyst Ratings

This is a summary of recent ratings for Kinsale Capital Group and Hagerty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinsale Capital Group	0	8	3	0	2.27
Hagerty	1	4	5	0	2.40

Kinsale Capital Group currently has a consensus target price of $495.44, suggesting a potential upside of 27.18%. Hagerty has a consensus target price of $14.00, suggesting a potential upside of 2.23%. Given Kinsale Capital Group’s higher possible upside, equities research analysts clearly believe Kinsale Capital Group is more favorable than Hagerty.

Volatility and Risk

Kinsale Capital Group has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Hagerty has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Earnings & Valuation

This table compares Kinsale Capital Group and Hagerty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinsale Capital Group	$1.80 billion	5.03	$414.84 million	$20.36	19.13
Hagerty	$1.20 billion	3.90	$17.02 million	$0.28	48.91

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

Summary

Kinsale Capital Group beats Hagerty on 10 of the 14 factors compared between the two stocks.

About Kinsale Capital Group

Kinsale Capital Group, Inc., a specialty insurance company, engages in the provision of property and casualty insurance products in the United States. The company’s commercial lines offerings include commercial property, small business casualty and property, excess and general casualty, construction, allied health, life sciences, entertainment, energy, environmental, excess professional, health care, public entity, commercial auto, inland marine, aviation, ocean marine, product recall, and railroad, as well as product, professional, and management liability insurance. It markets and sells its insurance products in all 50 states, the District of Columbia, the Commonwealth of Puerto Rico, and the U.S. Virgin Islands primarily through a network of independent insurance brokers. The company was founded in 2009 and is headquartered in Richmond, Virginia.

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.