Hagerty vs Federated Hermes

Hagerty vs Federated Hermes: this page compares two listed companies, outlining their business models, financial performance, and the market context in which they operate. The aim is to present neutral, accessible information to help readers understand each business and its place in the market. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

HGTY

Metric

FHI

$4.33B

Market Cap

$4.14B

9.72%

Potential Profit

-3.99%

Hold

Analyst Rating

Hold

Investment Analysis

Hagerty

HGTY

Pros

Hagerty has demonstrated strong growth in its core insurance segment, driven by increasing demand for specialty vehicle coverage.
The company maintains a diversified revenue base with expanding digital marketplace and membership offerings.
Hagerty benefits from a loyal customer base and a unique position in the classic car and enthusiast market.

Considerations

Hagerty faces exposure to insurance sector volatility, including claims fluctuations and regulatory changes.
Profitability has been pressured by rising claims costs and investment losses in recent periods.
The company's valuation appears stretched relative to peers, reflecting limited margin for error.

Federated Hermes

FHI

Pros

Federated Hermes has delivered consistent earnings and maintains a solid net profit margin above 20%.
The company holds a strong balance sheet with a low debt/equity ratio and robust liquidity.
Federated Hermes offers a reliable dividend track record, supported by recurring asset management fees.

Considerations

Revenue growth has been modest, reflecting challenges in attracting new assets in a competitive market.
The business is exposed to market cyclicality, with performance tied to asset values and investor sentiment.
Recent insider selling activity may signal caution among company executives regarding near-term prospects.

About The Companies

Hagerty (HGTY)

Hagerty Inc. (HGTY) specialises in insurance and services for classic, collector and enthusiast vehicles, combining underwriting, membership subscriptions, pricing tools, media and marketplace activities. With a market capitalisation near $3.85B, the business aims to monetise a passionate community through recurring premiums, membership fees and ancillary products such as valuations and events. Investors should note the diversified revenue mix can help growth but also depends on consumer discretionary spending, interest in classic vehicles and successful scaling of non-insurance services. Profitability and cash flow can vary with claims experience, catastrophe exposure and investment in growth initiatives. Competition comes from specialty insurers and digital marketplaces. Key risks include concentration in a niche market, regulatory changes in insurance, and sensitivity to economic cycles. This is general educational information, not personalised advice; any investment decision should consider your financial situation and risk tolerance, and it’s possible to lose capital.

Federated Hermes (FHI)

Federated Hermes, Inc. is an investment management company that provides a wide range of financial services. Its core business involves sponsoring, marketing, and offering investment-related services for various products, including its sponsored Federated Hermes Funds and Separate Accounts for institutional clients. The company serves a diverse client base, ranging from large institutions and corporations to retirement plans and retail investors, who are typically accessed through intermediaries like banks and broker-dealers. Beyond traditional investment management, the firm also provides stewardship and real estate development services to an international clientele. As such, Federated Hermes operates as a key player in the global financial services ecosystem, managing assets and providing advisory services for a broad spectrum of investors. The value of investments can go down as well as up, and returns are not guaranteed.

Which Baskets Do They Appear In?

Information Asymmetry Arbitrageurs

These companies build their success on knowing more than their customers. Our analysts have selected businesses that create lasting value from proprietary data and analytical advantages in complex markets like credit scoring, auto sales, and insurance.

Published: June 17, 2025

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Which Baskets Do They Appear In?

Information Asymmetry Arbitrageurs

Published: June 17, 2025

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Hagerty vs Federated Hermes

Comparison Snapshot