Head to Head Survey: Hagerty (NYSE:HGTY) versus RenaissanceRe (NYSE:RNR)

RenaissanceRe (NYSE:RNR) and Hagerty (NYSE:HGTY) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RenaissanceRe	1	11	5	0	2.24
Hagerty	0	5	4	0	2.44

RenaissanceRe currently has a consensus price target of $335.33, suggesting a potential upside of 2.13%. Hagerty has a consensus price target of $13.67, suggesting a potential upside of 17.12%. Given Hagerty’s stronger consensus rating and higher probable upside, analysts clearly believe Hagerty is more favorable than RenaissanceRe.

Profitability

This table compares RenaissanceRe and Hagerty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RenaissanceRe	23.65%	23.10%	4.62%
Hagerty	5.11%	11.94%	3.61%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RenaissanceRe	$12.85 billion	1.09	$2.68 billion	$58.27	5.63
Hagerty	$1.46 billion	2.75	$49.02 million	$0.20	58.34

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

Insider and Institutional Ownership

100.0% of RenaissanceRe shares are held by institutional investors. Comparatively, 20.5% of Hagerty shares are held by institutional investors. 2.3% of RenaissanceRe shares are held by insiders. Comparatively, 3.7% of Hagerty shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

RenaissanceRe has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, Hagerty has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Summary

RenaissanceRe beats Hagerty on 8 of the 14 factors compared between the two stocks.

About RenaissanceRe

RenaissanceRe Holdings Ltd., together with its subsidiaries, provides reinsurance and insurance products in the United States and internationally. The company operates through Property, and Casualty and Specialty segments. The Property segment writes property catastrophe excess of loss reinsurance and excess of loss reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, including hurricanes, earthquakes, typhoons, and tsunamis, as well as winter storms, freezes, floods, fires, windstorms, tornadoes, explosions, and acts of terrorism; and other property class of products, such as proportional reinsurance, property per risk, property reinsurance, binding facilities, and regional U.S. multi-line reinsurance. The Casualty and Specialty segment writes various classes of products, such as directors and officers, medical malpractice, and professional indemnity; automobile and employer’s liability, casualty clash, umbrella or excess casualty, workers’ compensation, and general liability; financial and mortgage guaranty, political risk, surety, and trade credit; and accident and health, agriculture, aviation, cyber, energy, marine, satellite, and terrorism. It distributes products and services primarily through intermediaries. The company invests in and manages funds. RenaissanceRe Holdings Ltd. was founded in 1993 and is headquartered in Pembroke, Bermuda.

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.