NMI (NASDAQ:NMIH) and Hagerty (NYSE:HGTY) Financial Review

NMI (NASDAQ:NMIH) and Hagerty (NYSE:HGTY) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Insider and Institutional Ownership

94.1% of NMI shares are owned by institutional investors. Comparatively, 20.5% of Hagerty shares are owned by institutional investors. 3.0% of NMI shares are owned by insiders. Comparatively, 16.7% of Hagerty shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares NMI and Hagerty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NMI	55.05%	15.78%	10.64%
Hagerty	5.98%	16.24%	4.81%

Earnings and Valuation

This table compares NMI and Hagerty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NMI	$706.44 million	4.19	$388.93 million	$4.91	7.92
Hagerty	$1.46 billion	2.68	$49.02 million	$0.33	34.49

NMI has higher earnings, but lower revenue than Hagerty. NMI is trading at a lower price-to-earnings ratio than Hagerty, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

NMI has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Hagerty has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for NMI and Hagerty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NMI	0	1	4	0	2.80
Hagerty	0	4	4	0	2.50

NMI currently has a consensus price target of $42.80, suggesting a potential upside of 10.00%. Hagerty has a consensus price target of $14.00, suggesting a potential upside of 23.00%. Given Hagerty’s higher probable upside, analysts clearly believe Hagerty is more favorable than NMI.

Summary

NMI beats Hagerty on 7 of the 13 factors compared between the two stocks.

About NMI

NMI Holdings, Inc. provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services, such as primary and pool insurance; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders. The company was incorporated in 2011 and is headquartered in Emeryville, California.

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.