Hagerty vs DNP Select Income Fund

This page compares Hagerty and DNP Select Income Fund, exploring their business models, financial performance, and market context in clear, accessible terms. It presents the factors that shape each organisation’s approach, potential strengths, and industry positioning without asserting recommendations. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

HGTY

Metric

DNP

$4.33B

Market Cap

$3.77B

9.72%

Potential Profit

N/A

Hold

Analyst Rating

N/A

Investment Analysis

Hagerty

HGTY

Pros

Hagerty has raised its full year 2025 outlook, forecasting strong revenue growth of 14-15% and net income growth of 58-65%.
The company is a market leader in specialty insurance for classic and enthusiast vehicles, with a loyal membership base and diversified enthusiast platform.
Hagerty benefits from recurring revenue streams through bundled insurance and Drivers Club memberships, supporting stable cash flow.

Considerations

Hagerty's earnings declined by over 40% in 2024 despite revenue growth, raising concerns about profitability and cost management.
The stock trades at a high valuation with a trailing PE ratio above 55, which may limit upside and increase downside risk.
Hagerty's business is sensitive to discretionary spending and economic cycles, which could affect demand for collector vehicles and insurance.

DNP Select Income Fund

DNP

Pros

DNP Select Income Fund offers a high dividend yield above 7%, making it attractive for income-focused investors.
The fund invests in a diversified portfolio of utility sector equities and fixed income, providing relative stability and lower volatility.
DNP has a low price-to-earnings ratio, suggesting it may be undervalued compared to broader market benchmarks.

Considerations

As a closed-end fund, DNP can trade at a premium or discount to its net asset value, introducing additional price risk for investors.
The fund's performance is closely tied to the utility sector, which may underperform in rising interest rate environments.
DNP's capital appreciation potential is limited by its focus on income generation rather than aggressive growth strategies.

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.

DNP Select Income Fund (DNP)

DNP Select Income Fund Inc. is a closed-end, diversified investment fund that many investors watch for its focus on income. Its primary goals are to generate current income and long-term income growth, with capital appreciation being a secondary objective. The fund primarily invests in a portfolio of equity and fixed-income securities from companies within the public utilities industry. It concentrates over 65% of its assets in firms involved in electricity, gas, or telephone services. This strategy is designed to capitalise on the characteristics often associated with the utilities sector. It's important for potential investors to remember that as with any investment, the fund's value can go down as well as up, and returns are not guaranteed. The fund is managed by Duff & Phelps Investment Management Co.

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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Comparison Snapshot