Hippo (NYSE:HIPO) and Hamilton Insurance Group (NYSE:HG) Head-To-Head Review
by Teresa Graham · The Cerbat GemHippo (NYSE:HIPO – Get Free Report) and Hamilton Insurance Group (NYSE:HG – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.
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 gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hippo | $209.70 million | 2.04 | -$273.10 million | ($10.08) | -1.70 |
| Hamilton Insurance Group | $1.57 billion | 1.28 | $258.73 million | $3.29 | 6.02 |
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 Ratings
This is a summary of current recommendations 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 presently has a consensus target price of $19.00, suggesting a potential upside of 10.66%. Hamilton Insurance Group has a consensus target price of $21.29, suggesting a potential upside of 7.50%. Given Hippo’s higher possible upside, research analysts clearly believe Hippo is more favorable than Hamilton Insurance Group.
Institutional and Insider 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 company insiders. Comparatively, 2.7% of Hamilton Insurance Group shares are owned by company 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 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.