Comparing Primerica (NYSE:PRI) and Hagerty (NYSE:HGTY)

Hagerty (NYSE:HGTY) and Primerica (NYSE:PRI) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Volatility & Risk

Hagerty has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Primerica has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Earnings and Valuation

This table compares Hagerty and Primerica”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hagerty	$1.46 billion	3.20	$49.02 million	$0.09	150.53
Primerica	$3.29 billion	2.57	$751.23 million	$24.90	11.05

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

Insider & Institutional Ownership

20.5% of Hagerty shares are owned by institutional investors. Comparatively, 90.9% of Primerica shares are owned by institutional investors. 3.7% of Hagerty shares are owned by insiders. Comparatively, 0.6% of Primerica shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Hagerty and Primerica, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hagerty	0	4	2	1	2.57
Primerica	0	6	2	0	2.25

Hagerty currently has a consensus price target of $14.00, suggesting a potential upside of 3.34%. Primerica has a consensus price target of $315.17, suggesting a potential upside of 14.55%. Given Primerica’s higher possible upside, analysts clearly believe Primerica is more favorable than Hagerty.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hagerty	1.81%	5.15%	1.58%
Primerica	23.20%	32.45%	5.35%

Summary

Primerica beats Hagerty on 9 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 Primerica

Primerica, Inc., together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates in four segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities, and fixed indexed annuities. The Senior Health segment offers segregated funds; and medicare advantage and supplement plans. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense, and motor vehicle-related matters; ID theft defense services; auto and homeowners' insurance; home automation solutions; and insurance products, including supplemental and accidental death, and disability insurance. It distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.