Head to Head Analysis: Hagerty (NYSE:HGTY) & AA (OTCMKTS:AATDF)

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

Analyst Recommendations

This is a summary of current ratings and target prices for Hagerty and AA, as reported by MarketBeat.

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

Hagerty presently has a consensus target price of $11.00, indicating a potential upside of 7.53%. Given Hagerty’s stronger consensus rating and higher probable upside, research analysts clearly believe Hagerty is more favorable than AA.

Profitability

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

Insider and Institutional Ownership

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hagerty	$1.00 billion	3.49	$20.23 million	$0.11	93.00
AA	N/A	N/A	N/A	N/A	N/A

Hagerty has higher revenue and earnings than AA.

Summary

Hagerty beats AA on 8 of the 8 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 AA

AA plc provides roadside assistance, insurance, and driving services in the United Kingdom. It operates through two segments, Roadside and Insurance. The company offers breakdowns cover for cars, motorcycles, caravans, vans, and towing; car, motorbike, van, and caravan insurance; and loans, savings, mortgage, travel currency card, insurance, and credit card products. It also provides home, content, building, pet, and holiday home insurance products; and travel services. In addition, the company offers driving advisory services, such as child safety, fuel and environment, legal advisory, service and repair, safety, security, and driving cost and other services; car and MOT services; and financial services, such as personal loans, car loans, home improvement loans, debt consolidation loans, wedding loans, loan management, savings, credit cards, and online security services, as well as reinsurance services. It serves fleet and leasing companies. The company was founded in 1905 and is headquartered in Basingstoke, the United Kingdom.