Head to Head Analysis: AIX (NASDAQ:AIFU) and Hagerty (NYSE:HGTY)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Hagerty and AIX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hagerty	1	2	0	0	1.67
AIX	0	0	0	0	0.00

Hagerty currently has a consensus price target of $11.00, indicating a potential upside of 9.58%. Given Hagerty’s stronger consensus rating and higher probable upside, analysts plainly believe Hagerty is more favorable than AIX.

Volatility & Risk

Hagerty has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, AIX has a beta of -0.07, indicating that its stock price is 107% less volatile than the S&P 500.

Profitability

This table compares Hagerty and AIX’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%
AIX	N/A	N/A	N/A

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hagerty	$1.16 billion	2.96	$20.23 million	$0.11	91.25
AIX	$2.36 billion	0.01	$39.50 million	$0.73	0.50

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

Insider and Institutional Ownership

20.5% of Hagerty shares are owned by institutional investors. Comparatively, 26.7% of AIX shares are owned by institutional investors. 17.9% of Hagerty shares are owned by insiders. Comparatively, 25.6% of AIX shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Hagerty beats AIX on 8 of the 13 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 AIX

AIX, Inc. engages in the provision of agency services and insurance claims adjusting services. It operates through the Insurance Agency and Claims Adjusting segments. The Insurance Agency segment includes providing agency services for insurance products and life insurance products. The Claims Adjusting segment provides pre-underwriting survey services, claims adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The company was founded by Yin An Hu and Qiu Ping Lai in 1998 and is headquartered in Guangzhou, China.