Arch Capital Group (NASDAQ:ACGL) versus Hagerty (NYSE:HGTY) Head-To-Head Review

Arch Capital Group (NASDAQ:ACGL) and Hagerty (NYSE:HGTY) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arch Capital Group	$19.93 billion	1.87	$4.40 billion	$12.23	8.93
Hagerty	$1.46 billion	3.72	$49.02 million	$0.06	262.73

Arch Capital Group has higher revenue and earnings than Hagerty. Arch 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.

Institutional and Insider Ownership

89.1% of Arch Capital Group shares are held by institutional investors. Comparatively, 20.5% of Hagerty shares are held by institutional investors. 3.3% of Arch Capital Group shares are held by company insiders. Comparatively, 3.7% 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 is poised for long-term growth.

Risk & Volatility

Arch Capital Group has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500. Comparatively, Hagerty has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arch Capital Group	23.31%	16.62%	4.64%
Hagerty	1.08%	6.27%	1.92%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Arch Capital Group and Hagerty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arch Capital Group	1	8	7	0	2.38
Hagerty	0	5	3	0	2.38

Arch Capital Group currently has a consensus target price of $111.65, indicating a potential upside of 2.20%. Hagerty has a consensus target price of $16.43, indicating a potential upside of 4.22%. Given Hagerty’s higher probable upside, analysts clearly believe Hagerty is more favorable than Arch Capital Group.

Summary

Arch Capital Group beats Hagerty on 8 of the 13 factors compared between the two stocks.

About Arch Capital Group

Arch Capital Group Ltd. is a global insurance and reinsurance company headquartered in Bermuda. Through its insurance, reinsurance and mortgage insurance operations, it provides coverage and risk-management solutions to businesses, financial institutions and other customers. The company’s offerings include property and casualty insurance, specialty coverage and reinsurance for risks such as property, casualty and professional liability. Its mortgage insurance business serves lenders and borrowers, primarily in the United States.

About Hagerty

Hagerty is an automotive enthusiast company focused on collectible and classic vehicles. Its services include specialty vehicle insurance, membership programs, vehicle valuation tools, and online marketplaces that connect buyers and sellers. The company also produces automotive media and hosts events and driving experiences for enthusiasts. Hagerty serves customers in the United States and select international markets, including Canada and the United Kingdom. Founded in 1984 as a family business, Hagerty is headquartered in Traverse City, Michigan.