Financial Comparison: GAINSCO (OTCMKTS:GANS) versus Hippo (NYSE:HIPO)

Hippo (NYSE:HIPO) and GAINSCO (OTCMKTS:GANS) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Institutional & Insider Ownership

43.0% of Hippo shares are held by institutional investors. 11.4% of Hippo shares are held by company insiders. Comparatively, 73.5% of GAINSCO shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Hippo and GAINSCO, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hippo	0	1	2	0	2.67
GAINSCO	0	0	0	0	0.00

Hippo currently has a consensus price target of $28.00, indicating a potential upside of 7.90%. Given Hippo’s stronger consensus rating and higher probable upside, analysts plainly believe Hippo is more favorable than GAINSCO.

Valuation & Earnings

This table compares Hippo and GAINSCO”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hippo	$372.10 million	1.75	-$273.10 million	($1.74)	-14.91
GAINSCO	N/A	N/A	N/A	N/A	N/A

GAINSCO has lower revenue, but higher earnings than Hippo.

Profitability

This table compares Hippo and GAINSCO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hippo	-37.94%	-36.38%	-8.36%
GAINSCO	N/A	N/A	N/A

Summary

Hippo beats GAINSCO on 5 of the 9 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 GAINSCO

GAINSCO, Inc. operates as a property and casualty insurance holding company. The company offers non-standard personal auto products, including coverage for third party liability, bodily injury, and physical damage, as well as collision and coverage for theft, physical damage, and other perils for an insured's vehicle. It is also involved in automotive sales and service, auto racing, and investment activities. The company offers its automobile insurance products under the GAINSCO Auto Insurance brand through independent partner agents and Website comparison shopping places. GAINSCO, Inc. was founded in 1978 and is based in Dallas, Texas.