Hagerty (NYSE:HGTY) & The Baldwin Insurance Group (NASDAQ:BWIN) Critical Analysis

Hagerty (NYSE:HGTY) and The Baldwin Insurance Group (NASDAQ:BWIN) are both mid-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Profitability

This table compares Hagerty and The Baldwin Insurance Group’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%
The Baldwin Insurance Group	-2.89%	10.57%	3.10%

Institutional and Insider Ownership

20.5% of Hagerty shares are owned by institutional investors. Comparatively, 77.5% of The Baldwin Insurance Group shares are owned by institutional investors. 17.9% of Hagerty shares are owned by company insiders. Comparatively, 20.1% of The Baldwin Insurance Group 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 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, The Baldwin Insurance Group has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.

Valuation and Earnings

This table compares Hagerty and The Baldwin Insurance Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hagerty	$1.16 billion	3.29	$20.23 million	$0.11	101.64
The Baldwin Insurance Group	$1.33 billion	3.78	-$90.14 million	($0.64)	-67.05

Hagerty has higher earnings, but lower revenue than The Baldwin Insurance Group. The Baldwin 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Hagerty and The Baldwin Insurance Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hagerty	0	2	0	0	2.00
The Baldwin Insurance Group	0	2	4	1	2.86

Hagerty presently has a consensus price target of $11.00, suggesting a potential downside of 1.61%. The Baldwin Insurance Group has a consensus price target of $47.17, suggesting a potential upside of 9.92%. Given The Baldwin Insurance Group’s stronger consensus rating and higher probable upside, analysts plainly believe The Baldwin Insurance Group is more favorable than Hagerty.

Summary

The Baldwin Insurance Group beats Hagerty on 9 of the 15 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 The Baldwin Insurance Group

The Baldwin Insurance Group, Inc. operates as an independent insurance distribution firm that delivers insurance and risk management solutions in the United States. It operates through three segments: Insurance Advisory Solutions; Underwriting, Capacity & Technology Solutions; and Mainstreet Insurance Solutions. The Insurance Advisory Solutions segment provides commercial risk management, employee benefits, and private risk management solutions for businesses and high-net-worth individuals, as well as their families. The Underwriting, Capacity & Technology Solutions segment offers Future platform, that manufactures technology-enabled insurance products suite comprises personal, commercial, and specialty lines; specialty wholesale broker business that delivers professionals, individuals, and niche industry businesses; and reinsurance brokerage services. The Mainstreet Insurance Solutions segment provides personal insurance, commercial insurance, and life and health solutions to individuals and businesses in communities. The company was formerly known as BRP Group, Inc. and changed its name to The Baldwin Insurance Group, Inc. in May 2024. The Baldwin Insurance Group, Inc. was founded in 2011 and is headquartered in Tampa, Florida.