Comparing Safety Insurance Group (NASDAQ:SAFT) & Hagerty (NYSE:HGTY)

Hagerty (NYSE:HGTY) and Safety Insurance Group (NASDAQ:SAFT) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Insider & Institutional Ownership

20.5% of Hagerty shares are held by institutional investors. Comparatively, 81.0% of Safety Insurance Group shares are held by institutional investors. 16.7% of Hagerty shares are held by company insiders. Comparatively, 2.2% of Safety Insurance Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Hagerty and Safety Insurance Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hagerty	0	4	4	0	2.50
Safety Insurance Group	0	1	0	0	2.00

Hagerty presently has a consensus price target of $13.71, indicating a potential upside of 36.00%. Given Hagerty’s stronger consensus rating and higher probable upside, analysts plainly believe Hagerty is more favorable than Safety Insurance Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hagerty	5.98%	16.24%	4.81%
Safety Insurance Group	7.85%	9.64%	3.54%

Volatility and Risk

Hagerty has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Safety Insurance Group has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.

Earnings and Valuation

This table compares Hagerty and Safety Insurance Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hagerty	$1.46 billion	2.37	$49.02 million	$0.33	30.56
Safety Insurance Group	$1.26 billion	0.87	$99.25 million	$6.70	11.24

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

Summary

Hagerty beats Safety Insurance Group on 10 of the 14 factors compared between the two stocks.

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.

About Safety Insurance Group

Safety Insurance Group, Inc. provides private passenger and commercial automobile, and homeowner insurance in the United States. The company’s private passenger automobile policies offer coverage for bodily injury and property damage to others, no-fault personal injury coverage for the insured/insured’s car occupants, and physical damage coverage for an insured’s own vehicle for collision or other perils. It also provides commercial automobile policies that offer insurance for commercial vehicles used for business purposes, including private passenger-type vehicles, trucks, tractors and trailers, insure individual vehicles, and commercial fleets; and homeowners policies, which provide coverage for homes, condominiums, and apartments for losses to a dwelling and its contents from various perils, and coverage for liability to others arising from ownership or occupancy. In addition, the company offers business owners policies that cover apartments and residential condominiums, restaurants, office condominiums, processing and services businesses, special trade contractors, and wholesalers. Further, it provides personal umbrella policies, which provide personal excess liability coverage over and above the limits of individual automobile, watercraft, and homeowner’s insurance policies; and commercial umbrella, which offers an excess liability product to clients, as well as underwrites dwelling fire insurance for non-owner-occupied residences. Additionally, the company offers inland marine coverage for homeowners and business owner policies, and watercraft coverage for small and medium sized pleasure crafts. It distributes its products through independent agents. The company was formerly known as Safety Holdings Inc and changed its name to Safety Insurance Group, Inc. in April 2002. Safety Insurance Group, Inc. was founded in 1979 and is headquartered in Boston, Massachusetts.