Reviewing Stewart Information Services (NYSE:STC) and Hagerty (NYSE:HGTY)

Stewart Information Services (NYSE:STCGet Free Report) and Hagerty (NYSE:HGTYGet Free Report) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Insider and Institutional Ownership

96.9% of Stewart Information Services shares are held by institutional investors. Comparatively, 20.5% of Hagerty shares are held by institutional investors. 2.9% of Stewart Information Services shares are held by company insiders. Comparatively, 16.7% of Hagerty shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Stewart Information Services and Hagerty, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stewart Information Services 0 0 4 0 3.00
Hagerty 0 5 4 0 2.44

Stewart Information Services currently has a consensus price target of $83.00, indicating a potential upside of 23.70%. Hagerty has a consensus price target of $13.38, indicating a potential upside of 21.80%. Given Stewart Information Services’ stronger consensus rating and higher possible upside, equities analysts plainly believe Stewart Information Services is more favorable than Hagerty.

Risk and Volatility

Stewart Information Services has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Hagerty has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Earnings and Valuation

This table compares Stewart Information Services and Hagerty”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stewart Information Services $2.92 billion 0.70 $115.54 million $4.48 14.98
Hagerty $1.46 billion 2.59 $49.02 million $0.20 54.91

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

Net Margins Return on Equity Return on Assets
Stewart Information Services 4.19% 10.07% 5.17%
Hagerty 5.11% 11.94% 3.61%

Summary

Stewart Information Services beats Hagerty on 8 of the 13 factors compared between the two stocks.

About Stewart Information Services

(Get Free Report)

Stewart Information Services Corporation, through its subsidiaries, provides title insurance and real estate transaction related services in the United States and internationally. The company involves in searching, examining, closing, and insuring the condition of the title to real property. It also offers home and personal insurance services; services for tax-deferred exchanges; and digital customer engagement platform services. It also provides appraisal management, online notarization and closing, credit and real estate information, and search and valuation services. The company serves homebuyers and sellers, residential and commercial real estate professionals, mortgage lenders and servicers, title agencies and real estate attorneys, and home builders through direct operations, network of independent agencies, and other businesses. The company was founded in 1893 and is headquartered in Houston, Texas.

About Hagerty

(Get Free Report)

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.

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