Hagerty (NYSE:HGTY) vs. Allstate (NYSE:ALL) Critical Survey

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allstate	$64.11 billion	0.85	$4.67 billion	$30.89	6.76
Hagerty	$1.20 billion	3.87	$17.02 million	$0.28	48.43

Allstate has higher revenue and earnings than Hagerty. Allstate 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 Allstate and Hagerty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allstate	12.53%	35.42%	6.65%
Hagerty	5.85%	16.85%	4.94%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Allstate and Hagerty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allstate	1	7	8	3	2.68
Hagerty	0	4	5	0	2.56

Allstate presently has a consensus target price of $236.93, indicating a potential upside of 13.39%. Hagerty has a consensus target price of $14.00, indicating a potential upside of 3.24%. Given Allstate’s stronger consensus rating and higher possible upside, research analysts plainly believe Allstate is more favorable than Hagerty.

Insider & Institutional Ownership

76.5% of Allstate shares are held by institutional investors. Comparatively, 20.5% of Hagerty shares are held by institutional investors. 1.7% of Allstate shares are held by insiders. Comparatively, 16.7% of Hagerty shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Allstate has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500. Comparatively, Hagerty has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Summary

Allstate beats Hagerty on 11 of the 15 factors compared between the two stocks.

About Allstate

The Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. It operates in five segments: Allstate Protection; Protection Services; Allstate Health and Benefits; Run-off Property-Liability; and Corporate and Other segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; other personal lines products; and commercial lines products through agents, contact centers, and online. The Protection Services segment provides consumer product protection; protection and insurance products, including vehicle service contracts, guaranteed asset protection, road hazard tire and wheel, and paintless dent repair protection; and roadside assistance, device and mobile data collection services, and analytic solutions using automotive telematics information, as well as identity theft protection and remediation services. This segment also offers its products under various brands, including Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity, Avail, and Allstate Identity Protection. The Allstate Health and Benefits segment provides life, accident, critical illness, short-term disability, and other health insurance products; stop-loss and fully insured group health products to employers; and short-term medical and medicare supplement insurance to individuals. The Run-off Property-Liability segment offers property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. The Corporate and Other segment provides debt services, as well as non-insurance operations. It sells its products through agents, independent agents, call and contact centers, retailers, direct to consumer, wholesale partners, and affinity groups, as well as through online and mobile applications. The Allstate Corporation was founded in 1931 and is headquartered in Northbrook, Illinois.

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.