Hippo (NYSE:HIPO) vs. Hamilton Insurance Group (NYSE:HG) Financial Analysis

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

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%

Earnings and Valuation

This table compares Hippo and Hamilton Insurance Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hippo	$296.90 million	1.49	-$273.10 million	($10.08)	-1.80
Hamilton Insurance Group	$2.18 billion	0.94	$258.73 million	$3.29	5.65

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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Hippo and Hamilton Insurance Group, as provided 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 presently has a consensus price target of $19.00, suggesting a potential upside of 4.63%. Hamilton Insurance Group has a consensus price target of $21.29, suggesting a potential upside of 14.56%. Given Hamilton Insurance Group’s stronger consensus rating and higher probable upside, analysts plainly believe Hamilton Insurance Group is more favorable than Hippo.

Insider & Institutional Ownership

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

Summary

Hamilton Insurance Group beats Hippo on 10 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.