Contrasting Hamilton Insurance Group (NYSE:HG) and Hippo (NYSE:HIPO)

Hamilton Insurance Group (NYSE:HG) and Hippo (NYSE:HIPO) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Profitability

This table compares Hamilton Insurance Group and Hippo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hamilton Insurance Group	21.45%	21.77%	6.52%
Hippo	-57.80%	-46.46%	-11.11%

Valuation and Earnings

This table compares Hamilton Insurance Group and Hippo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hamilton Insurance Group	$1.57 billion	1.28	$258.73 million	$3.29	6.02
Hippo	$209.70 million	2.04	-$273.10 million	($10.08)	-1.70

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

Insider and Institutional Ownership

29.2% of Hamilton Insurance Group shares are held by institutional investors. Comparatively, 43.0% of Hippo shares are held by institutional investors. 2.7% of Hamilton Insurance Group shares are held by insiders. Comparatively, 11.4% of Hippo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Hamilton Insurance Group and Hippo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hamilton Insurance Group	0	1	6	0	2.86
Hippo	0	2	1	0	2.33

Hamilton Insurance Group currently has a consensus price target of $21.29, indicating a potential upside of 7.50%. Hippo has a consensus price target of $19.00, indicating a potential upside of 10.66%. Given Hippo’s higher probable upside, analysts plainly believe Hippo is more favorable than Hamilton Insurance Group.

Summary

Hamilton Insurance Group beats Hippo on 9 of the 13 factors compared between the two stocks.

About Hamilton Insurance Group

Hamilton Insurance Group, Ltd., through its subsidiaries, provides underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company operates Hamilton Global Specialty, Hamilton Select, and Hamilton Re underwriting platforms. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property reinsurance and insurance; and specialty reinsurance solutions, including accident and health, aviation and space, crisis management, mortgage, financial lines, marine and energy, and multiline specialty. In addition, it offers accident and health, cyber, energy, environmental, financial lines, fine art and specie, kidnap and ransom, mergers and acquisitions, marine and energy liability, political risk and violence, professional liability, property binders, property direct and facultative, professional lines, space, upstream energy, excess casualty, war and terrorism, allied medical, management liability, medical professionals, general liability, products liability and contractors, and small business casualty insurance plans, as well as surety and treaty reinsurance products. The company was incorporated in 2013 and is headquartered in Pembroke, Bermuda.

About Hippo

Hippo Holdings Inc. provides property and casualty insurance products to individuals and business customers primarily in the United States. The company operates through three segments: Services, Insurance-as-a-Service, and Hippo Home Insurance Program. Its insurance products include homeowners' insurance against risks of fire, wind, and theft, as well as other personal lines policies from third party carriers; and personal and commercial, as well as home, auto, cyber, small business, life, specialty lines, and other insurance products. The company distributes insurance products and services through its technology platform and website, as well as operates licensed insurance agencies. Hippo Holdings Inc. is headquartered in Palo Alto, California.