Comparing XChange TEC.INC (NASDAQ:XHG) and Hagerty (NYSE:HGTY)

Hagerty (NYSE:HGTY) and XChange TEC.INC (NASDAQ:XHG) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Profitability

This table compares Hagerty and XChange TEC.INC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hagerty	5.27%	12.06%	3.26%
XChange TEC.INC	N/A	N/A	N/A

Insider and Institutional Ownership

20.5% of Hagerty shares are owned by institutional investors. 17.9% of Hagerty shares are owned by company insiders. Comparatively, 0.6% of XChange TEC.INC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Hagerty has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, XChange TEC.INC has a beta of -0.78, indicating that its stock price is 178% less volatile than the S&P 500.

Earnings & Valuation

This table compares Hagerty and XChange TEC.INC”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hagerty	$1.19 billion	2.67	$20.23 million	$0.09	103.78
XChange TEC.INC	$288.37 million	0.00	-$32.32 million	N/A	N/A

Hagerty has higher revenue and earnings than XChange TEC.INC.

Analyst Ratings

This is a summary of current ratings and target prices for Hagerty and XChange TEC.INC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hagerty	1	2	0	0	1.67
XChange TEC.INC	0	0	0	0	0.00

Hagerty currently has a consensus price target of $11.00, indicating a potential upside of 17.77%. Given Hagerty’s stronger consensus rating and higher possible upside, research analysts plainly believe Hagerty is more favorable than XChange TEC.INC.

Summary

Hagerty beats XChange TEC.INC on 11 of the 11 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 XChange TEC.INC

XChange TEC.INC engages in the professional insurance agency business in the People’s Republic of China. The company provides a various insurance products underwritten by insurance companies, including state-owned property and casualty insurance companies, as well as various regional property and casualty insurance companies. It also offers automobile, life, health, group accident, and other property related insurances primarily to individual end consumers. In addition, the company operates a SaaS platform to offer comprehensive services to online customers. It sells insurance primarily through a network of external referral sources that include external registered sales representatives and strategic channel partners, as well as through the in-house sales force. The company was formerly known as FLJ Group Limited and changed its name to XChange TEC.INC in May 2024. XChange TEC.INC was founded in 2012 and is based in Shanghai, the People’s Republic of China.