Analyzing Globe Life (NYSE:GL) and Hagerty (NYSE:HGTY)

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

Volatility & Risk

Globe Life has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Hagerty has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Institutional and Insider Ownership

81.6% of Globe Life shares are owned by institutional investors. Comparatively, 20.5% of Hagerty shares are owned by institutional investors. 2.1% of Globe Life shares are owned by company insiders. Comparatively, 3.7% of Hagerty shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Globe Life and Hagerty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globe Life	0	2	8	1	2.91
Hagerty	0	5	3	1	2.56

Globe Life currently has a consensus target price of $191.67, indicating a potential upside of 10.06%. Hagerty has a consensus target price of $14.00, indicating a potential upside of 3.17%. Given Globe Life’s stronger consensus rating and higher possible upside, research analysts plainly believe Globe Life is more favorable than Hagerty.

Earnings and Valuation

This table compares Globe Life and Hagerty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globe Life	$5.99 billion	2.23	$1.16 billion	$15.06	11.56
Hagerty	$1.46 billion	3.20	$49.02 million	$0.09	150.78

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

	Net Margins	Return on Equity	Return on Assets
Globe Life	19.58%	20.52%	3.96%
Hagerty	1.81%	5.15%	1.58%

Summary

Globe Life beats Hagerty on 10 of the 14 factors compared between the two stocks.

About Globe Life

Globe Life Inc., through its subsidiaries, provides various life and supplemental health insurance products, and annuities to lower middle- and middle-income families in the United States. The company operates in four segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments. It offers whole, term, and other life insurance products; Medicare supplement and supplemental health insurance products, such as accident, cancer, critical illness, heart, and intensive care plans; and single-premium and flexible-premium deferred annuities. The company sells its products through its direct to consumer division, exclusive agencies, and independent agents. The company was formerly known as Torchmark Corporation and changed its name to Globe Life Inc. in August 2019. Globe Life Inc. was founded in 1900 and is headquartered in McKinney, Texas.

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.