Critical Comparison: Erie Indemnity Company (ERIE) versus HCI Group (HCII)

Erie Indemnity Company (NASDAQ: ERIE) and HCI Group (NASDAQ:HCII) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitabiliy, institutional ownership, analyst recommendations, valuation and risk.

Insider & Institutional Ownership

30.9% of Erie Indemnity Company shares are owned by institutional investors. 46.8% of Erie Indemnity Company shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets 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
HCI Group 0 0 0 0 N/A

Profitability

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%
HCI Group 17.70% 19.07% 6.61%

Valuation & Earnings

This table compares Erie Indemnity Company and HCI Group’s top-line 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 4.00 $306.06 million $4.04 30.65
HCI Group N/A N/A N/A N/A N/A

Erie Indemnity Company has higher revenue and earnings than HCI Group.

Dividends

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 raised its dividend for 21 consecutive years.

Summary

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.

Receive News & Ratings for Erie Indemnity Company Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Erie Indemnity Company and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply