Heritage Insurance vs Citizens Which Offers More Value?

Heritage Insurance Holdings, Inc. and Citizens Property Insurance Corporation are two well-known companies in the insurance industry that offer different products and services to their customers. While Heritage Insurance focuses on providing property and casualty insurance policies, Citizens Property Insurance specializes in providing property insurance policies to Florida residents. Both stocks have shown growth and profitability over the years, attracting investors looking to diversify their portfolios within the insurance sector. This article will compare and contrast the stocks of Heritage Insurance and Citizens Property Insurance to help investors make informed decisions.

Heritage Insurance or Citizens?

When comparing Heritage Insurance and Citizens, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Heritage Insurance and Citizens.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Heritage Insurance has a dividend yield of -%, while Citizens has a dividend yield of 7.23%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Heritage Insurance reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.07%. On the other hand, Citizens reports a 5-year dividend growth of -5.59% year and a payout ratio of 377.59%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Heritage Insurance P/E ratio at 5.23 and Citizens's P/E ratio at 69.46. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Heritage Insurance P/B ratio is 1.35 while Citizens's P/B ratio is 1.16.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Heritage Insurance has seen a 5-year revenue growth of 0.52%, while Citizens's is -0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Heritage Insurance's ROE at 29.17% and Citizens's ROE at 1.83%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $12.17 for Heritage Insurance and $8.85 for Citizens. Over the past year, Heritage Insurance's prices ranged from $5.51 to $16.90, with a yearly change of 206.72%. Citizens's prices fluctuated between $6.64 and $9.65, with a yearly change of 45.33%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.