Heritage Insurance (NYSE:HRTG) and Safety Insurance Group (NASDAQ:SAFT) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.
Valuation & Earnings
This table compares Heritage Insurance and Safety Insurance Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Heritage Insurance||$480.17 million||0.97||$27.16 million||$1.38||11.20|
|Safety Insurance Group||$836.50 million||1.72||$83.19 million||N/A||N/A|
This is a summary of current recommendations and price targets for Heritage Insurance and Safety Insurance Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Safety Insurance Group||0||0||0||0||N/A|
Heritage Insurance currently has a consensus price target of $18.17, suggesting a potential upside of 17.51%. Given Heritage Insurance’s higher probable upside, research analysts clearly believe Heritage Insurance is more favorable than Safety Insurance Group.
This table compares Heritage Insurance and Safety Insurance Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Safety Insurance Group||12.25%||14.41%||5.55%|
Insider and Institutional Ownership
64.3% of Heritage Insurance shares are owned by institutional investors. Comparatively, 81.3% of Safety Insurance Group shares are owned by institutional investors. 12.0% of Heritage Insurance shares are owned by insiders. Comparatively, 4.8% of Safety Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Heritage Insurance has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Safety Insurance Group has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.
Heritage Insurance pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. Safety Insurance Group pays an annual dividend of $3.20 per share and has a dividend yield of 3.4%. Heritage Insurance pays out 17.4% of its earnings in the form of a dividend. Heritage Insurance has increased its dividend for 2 consecutive years and Safety Insurance Group has increased its dividend for 2 consecutive years.
Safety Insurance Group beats Heritage Insurance on 10 of the 14 factors compared between the two stocks.
About Heritage Insurance
Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products. The company offers personal residential property insurance for single-family homeowners and condominium owners; rental property insurance; and commercial residential insurance in Alabama, Connecticut, Florida, Georgia, Hawaii, Massachusetts, New York, New Jersey, North Carolina, Rhode Island, and South Carolina, as well as residential wind-only property insurance. As of December 31, 2018, it had approximately 512,793 personal residential policies and 3,000 commercial residential policies. The company markets and writes its voluntary personal line policies through a network of retail independent agents, wholesale agents, and a partnership with a direct agency, as well as indirectly to approximately 1,500 retail locations through 8 wholesale agency relationships. It also provides restoration, and emergency and recovery services; and property management, retail agency, and reinsurance services. The company was founded in 2012 and is headquartered in Clearwater, Florida.
About Safety Insurance Group
Safety Insurance Group, Inc. provides private passenger and commercial automobile insurance in Massachusetts, New Hampshire, and Maine, the United States. The company's private passenger automobile policies offer coverage for bodily injury and property damage to others, no-fault personal injury coverage for the insured/insured's car occupants, and physical damage coverage for an insured's own vehicle for collision or other perils. It also provides commercial automobile policies that offer insurance for commercial vehicles used for business purposes, including private passenger-type vehicles, trucks, tractors and trailers, insure individual vehicles, and commercial fleets; and homeowners policies, which provide coverage for homes, condominiums, and apartments for losses to a dwelling and its contents from various perils, and coverage for liability to others arising from ownership or occupancy. In addition, the company offers business owners policies that cover apartments and residential condominiums, restaurants, office condominiums, processing and services businesses, special trade contractors, and wholesalers. Further, it provides personal umbrella policies, which provide personal excess liability coverage over and above the limits of individual automobile, watercraft, and homeowner's insurance policies; and commercial umbrella policies, as well as underwrites dwelling fire insurance for non-owner occupied residences. Additionally, the company offers inland marine coverage for homeowners and business owner policies; and watercraft coverage for small and medium sized pleasure crafts. It distributes its products through independent agents. The company was formerly known as Safety Holdings Inc and changed its name to Safety Insurance Group, Inc. in April 2002. Safety Insurance Group, Inc. was founded in 1979 and is based in Boston, Massachusetts.
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