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

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

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hippo	$296.90 million	1.39	-$273.10 million	($10.08)	-1.68
Hamilton Insurance Group	$2.18 billion	0.98	$258.73 million	$3.29	5.88

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 & Institutional Ownership

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

Analyst Recommendations

This is a summary of current ratings and price targets for Hippo and Hamilton Insurance Group, as reported by MarketBeat.

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

Hippo currently has a consensus price target of $19.00, indicating a potential upside of 12.49%. Hamilton Insurance Group has a consensus price target of $21.29, indicating a potential upside of 10.06%. Given Hippo’s higher possible upside, analysts clearly 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 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.

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.