Analyzing AIX (NASDAQ:AIFU) and Goosehead Insurance (NASDAQ:GSHD)

AIX (NASDAQ:AIFU) and Goosehead Insurance (NASDAQ:GSHD) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Profitability

This table compares AIX and Goosehead Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AIX	N/A	N/A	N/A
Goosehead Insurance	6.77%	284.41%	5.53%

Risk & Volatility

AIX has a beta of -0.15, suggesting that its stock price is 115% less volatile than the S&P 500. Comparatively, Goosehead Insurance has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.

Insider & Institutional Ownership

26.7% of AIX shares are held by institutional investors. 25.6% of AIX shares are held by company insiders. Comparatively, 48.3% of Goosehead Insurance shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares AIX and Goosehead Insurance”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AIX	$2.36 billion	0.01	$39.50 million	$0.73	0.44
Goosehead Insurance	$314.51 million	13.51	$14.14 million	$1.15	99.55

AIX has higher revenue and earnings than Goosehead Insurance. AIX is trading at a lower price-to-earnings ratio than Goosehead Insurance, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for AIX and Goosehead Insurance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AIX	0	0	0	0	0.00
Goosehead Insurance	1	4	5	0	2.40

Goosehead Insurance has a consensus price target of $109.10, suggesting a potential downside of 4.70%. Given Goosehead Insurance’s stronger consensus rating and higher possible upside, analysts clearly believe Goosehead Insurance is more favorable than AIX.

Summary

Goosehead Insurance beats AIX on 11 of the 14 factors compared between the two stocks.

About AIX

AIX, Inc. engages in the provision of agency services and insurance claims adjusting services. It operates through the Insurance Agency and Claims Adjusting segments. The Insurance Agency segment includes providing agency services for insurance products and life insurance products. The Claims Adjusting segment provides pre-underwriting survey services, claims adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The company was founded by Yin An Hu and Qiu Ping Lai in 1998 and is headquartered in Guangzhou, China.

About Goosehead Insurance

Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC that engages in the provision of personal lines insurance agency services in the United States. The company offers homeowner’s, automotive, dwelling property, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services. As of December 31, 2023, it operated 1,415 franchise locations. The company was founded in 2003 and is headquartered in Westlake, Texas.