Critical Review: Goosehead Insurance (NASDAQ:GSHD) & Sampo Oyj (OTCMKTS:SAXPF)

Goosehead Insurance (NASDAQ:GSHD) and Sampo Oyj (OTCMKTS:SAXPF) are both financial services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Goosehead Insurance and Sampo Oyj, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Goosehead Insurance	1	4	5	0	2.40
Sampo Oyj	0	0	0	0	N/A

Goosehead Insurance currently has a consensus price target of $89.40, indicating a potential downside of 17.67%. Given Goosehead Insurance’s higher possible upside, research analysts clearly believe Goosehead Insurance is more favorable than Sampo Oyj.

Earnings and Valuation

This table compares Goosehead Insurance and Sampo Oyj”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Goosehead Insurance	$283.60 million	14.55	$14.14 million	$0.62	175.15
Sampo Oyj	N/A	N/A	N/A	$2.76	15.48

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Goosehead Insurance	6.71%	244.15%	5.41%
Sampo Oyj	N/A	N/A	N/A

Institutional & Insider Ownership

33.6% of Sampo Oyj shares are owned by institutional investors. 48.3% of Goosehead Insurance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Goosehead Insurance pays an annual dividend of $4.60 per share and has a dividend yield of 4.2%. Sampo Oyj pays an annual dividend of $1.65 per share and has a dividend yield of 3.9%. Goosehead Insurance pays out 741.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sampo Oyj pays out 59.8% of its earnings in the form of a dividend.

Summary

Goosehead Insurance beats Sampo Oyj on 9 of the 12 factors compared between the two stocks.

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.

About Sampo Oyj

Sampo Oyj, together with its subsidiaries, engages in the provision of non-life insurance products and services in Finland, Sweden, Norway, Denmark, Estonia, Lithuania, Latvia, and the United Kingdom. The company operates through If, Topdanmark, Hastings, Mandatum, and Holding segments. It offers property, casualty, liability, accident, sickness, household, homeowner, motor, travel, marine, aviation, transport, forest, livestock, health, workers compensation, car, van, and bike insurance services, as well as reinsurance services. The company was founded in 1909 and is based in Helsinki, Finland.