Safety Insurance Group (NASDAQ:SAFT) versus Hagerty (NYSE:HGTY) Critical Analysis

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

Insider and Institutional Ownership

81.0% of Safety Insurance Group shares are held by institutional investors. Comparatively, 20.5% of Hagerty shares are held by institutional investors. 2.2% of Safety Insurance 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Safety Insurance Group has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500. Comparatively, Hagerty has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Safety Insurance Group and Hagerty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safety Insurance Group	0	1	1	0	2.50
Hagerty	0	5	3	0	2.38

Hagerty has a consensus price target of $16.43, suggesting a potential upside of 4.22%. Given Hagerty’s higher possible upside, analysts plainly believe Hagerty is more favorable than Safety Insurance Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Safety Insurance Group	5.46%	8.09%	2.84%
Hagerty	1.08%	6.27%	1.92%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safety Insurance Group	$1.26 billion	1.21	$99.25 million	$4.78	21.83
Hagerty	$1.46 billion	3.72	$49.02 million	$0.06	262.73

Safety Insurance Group has higher earnings, but lower revenue 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.

About Safety Insurance Group

Safety Insurance Group, Inc. is a property and casualty insurance holding company that provides coverage through its insurance subsidiaries. Its core products include private passenger automobile, commercial automobile and homeowners insurance. The company also offers additional property and casualty products, including dwelling fire, businessowners and commercial umbrella coverage. It distributes its policies through a network of independent insurance agents. Founded in 1979, Safety Insurance serves customers in Massachusetts, New Hampshire and Maine.

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.