Head to Head Survey: Hagerty (NYSE:HGTY) and XChange TEC.INC (NASDAQ:XHG)

Hagerty (NYSE:HGTY) and XChange TEC.INC (NASDAQ:XHG) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Profitability

This table compares Hagerty and XChange TEC.INC’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%
XChange TEC.INC	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for Hagerty and XChange TEC.INC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hagerty	1	2	0	0	1.67
XChange TEC.INC	0	0	0	0	0.00

Hagerty currently has a consensus target price of $11.00, indicating a potential upside of 12.94%. Given Hagerty’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Hagerty is more favorable than XChange TEC.INC.

Institutional & Insider Ownership

20.5% of Hagerty shares are owned by institutional investors. 17.9% of Hagerty shares are owned by company insiders. Comparatively, 0.6% of XChange TEC.INC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Hagerty has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, XChange TEC.INC has a beta of -0.76, suggesting that its stock price is 176% less volatile than the S&P 500.

Earnings & Valuation

This table compares Hagerty and XChange TEC.INC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hagerty	$1.16 billion	2.87	$20.23 million	$0.11	88.55
XChange TEC.INC	$288.37 million	0.00	-$32.32 million	N/A	N/A

Hagerty has higher revenue and earnings than XChange TEC.INC.

Summary

Hagerty beats XChange TEC.INC on 11 of the 11 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 XChange TEC.INC

XChange TEC.INC engages in the professional insurance agency business in the People’s Republic of China. The company provides a various insurance products underwritten by insurance companies, including state-owned property and casualty insurance companies, as well as various regional property and casualty insurance companies. It also offers automobile, life, health, group accident, and other property related insurances primarily to individual end consumers. In addition, the company operates a SaaS platform to offer comprehensive services to online customers. It sells insurance primarily through a network of external referral sources that include external registered sales representatives and strategic channel partners, as well as through the in-house sales force. The company was formerly known as FLJ Group Limited and changed its name to XChange TEC.INC in May 2024. XChange TEC.INC was founded in 2012 and is based in Shanghai, the People’s Republic of China.