Globe Life (NYSE:GL) and Hagerty (NYSE:HGTY) Critical Survey

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

Volatility & Risk

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

Institutional & Insider Ownership

20.5% of Hagerty shares are held by institutional investors. Comparatively, 81.6% of Globe Life shares are held by institutional investors. 3.7% of Hagerty shares are held by insiders. Comparatively, 2.1% of Globe Life shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hagerty	$1.42 billion	3.28	$49.02 million	$0.09	150.32
Globe Life	$6.18 billion	2.13	$1.16 billion	$15.06	11.36

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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Hagerty and Globe Life, as provided by MarketBeat.com.

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

Hagerty presently has a consensus price target of $14.00, indicating a potential upside of 3.48%. Globe Life has a consensus price target of $191.67, indicating a potential upside of 12.03%. Given Globe Life’s stronger consensus rating and higher possible upside, analysts clearly believe Globe Life is more favorable than Hagerty.

Profitability

This table compares Hagerty and Globe Life’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%
Globe Life	19.58%	20.52%	3.96%

Summary

Globe Life beats Hagerty 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 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.