Hippo (NYSE:HIPO) and Goosehead Insurance (NASDAQ:GSHD) Head-To-Head Analysis

Hippo (NYSE:HIPO) and Goosehead Insurance (NASDAQ:GSHD) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations for Hippo and Goosehead Insurance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hippo	0	3	3	0	2.50
Goosehead Insurance	0	6	7	0	2.54

Hippo presently has a consensus price target of $38.67, indicating a potential upside of 50.96%. Goosehead Insurance has a consensus price target of $73.00, indicating a potential upside of 80.29%. Given Goosehead Insurance’s stronger consensus rating and higher possible upside, analysts plainly believe Goosehead Insurance is more favorable than Hippo.

Insider and Institutional Ownership

43.0% of Hippo shares are owned by institutional investors. 10.8% of Hippo shares are owned by company insiders. Comparatively, 48.3% of Goosehead Insurance shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Hippo and Goosehead Insurance”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hippo	$468.60 million	1.42	$57.70 million	$2.14	11.97
Goosehead Insurance	$365.30 million	4.06	$27.83 million	$1.04	38.93

Hippo has higher revenue and earnings than Goosehead Insurance. Hippo 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 Hippo and Goosehead Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hippo	12.31%	-2.24%	-0.48%
Goosehead Insurance	7.62%	-21.31%	7.79%

Volatility & Risk

Hippo has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Goosehead Insurance has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500.

Summary

Goosehead Insurance beats Hippo on 8 of the 14 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 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.