Comparing Erie Indemnity Company (ERIE) & HCI Group (HCII)
Erie Indemnity Company (NASDAQ: ERIE) and HCI Group (NASDAQ:HCII) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitabiliy, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Erie Indemnity Company pays an annual dividend of $3.13 per share and has a dividend yield of 2.5%. HCI Group does not pay a dividend. Erie Indemnity Company pays out 77.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. HCI Group has increased its dividend for 21 consecutive years.
This is a summary of current ratings and target prices for Erie Indemnity Company and HCI Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Erie Indemnity Company||0||0||0||0||N/A|
Institutional and Insider Ownership
30.9% of Erie Indemnity Company shares are held by institutional investors. 46.8% of Erie Indemnity Company shares are held by company 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 Erie Indemnity Company and HCI Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Erie Indemnity Company||$1.62 billion||4.06||$306.06 million||$4.04||31.10|
Erie Indemnity Company has higher revenue and earnings than HCI Group.
This table compares Erie Indemnity Company and HCI Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Erie Indemnity Company||13.10%||25.80%||14.34%|
Erie Indemnity Company beats HCI Group on 6 of the 9 factors compared between the two stocks.
Erie Indemnity Company Company Profile
Erie Indemnity Company is a management company. The Company serves as the attorney-in-fact for the subscribers (policyholders) at the Erie Insurance Exchange (Exchange). The Exchange is a reciprocal insurer that writes property and casualty insurance. The Company’s function is to perform certain services for the Exchange relating to the sales, underwriting and issuance of policies on behalf of the Exchange. The sales related services the Company provides include agent compensation, and certain sales and advertising support services. Agent compensation includes scheduled commissions to agents based upon premiums written, as well as additional commissions and bonuses to agents. The underwriting services the Company provides include underwriting and policy processing expenses. It provides information technology services that supports various functions. The remaining services the Company provides include customer service and administrative costs.
HCI Group Company Profile
HCI Group, Inc. (HCI) is an insurance holding company. The Company operates through four operating divisions: property and casualty insurance, reinsurance, investment real estate and information technology. Its operations include Insurance Operations and Other Operations. Its Insurance Operations include property and casualty insurance, and reinsurance. The Company, through its subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc. (HCPCI), provides property and casualty insurance to homeowners, condominium owners and tenants on properties located in Florida. HCPCI also offers flood-endorsed and wind-only policies to new and pre-existing Florida customers. Its Other Operations include information technology (IT) and real estate. The Company’s real estate operations consist of multiple properties it owns and operates.
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