Analyzing Huize (NASDAQ:HUIZ) and RLI (NYSE:RLI)

RLI (NYSE:RLI) and Huize (NASDAQ:HUIZ) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Profitability

This table compares RLI and Huize’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RLI	20.34%	18.19%	5.02%
Huize	N/A	N/A	N/A

Volatility and Risk

RLI has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Huize has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Insider and Institutional Ownership

77.9% of RLI shares are owned by institutional investors. 2.4% of RLI shares are owned by insiders. Comparatively, 30.4% of Huize shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for RLI and Huize, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RLI	2	3	1	0	1.83
Huize	1	0	0	0	1.00

RLI currently has a consensus target price of $62.40, indicating a potential downside of 2.58%. Given RLI’s stronger consensus rating and higher possible upside, analysts clearly believe RLI is more favorable than Huize.

Valuation & Earnings

This table compares RLI and Huize”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RLI	$1.88 billion	3.12	$403.34 million	$4.76	13.46
Huize	$226.26 million	0.10	$580,000.00	$0.03	78.33

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

Summary

RLI beats Huize on 11 of the 13 factors compared between the two stocks.

About RLI

RLI Corp., an insurance holding company, underwrites property and casualty insurance. Its Casualty segment provides commercial and personal coverage products; and general liability products, such as coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, and mercantile. It also offers coverages for security guards and environmental liability for underground storage tanks, contractors and asbestos, and environmental remediation specialists; and professional liability coverages for errors and omission coverage for small to medium-sized design, technical, computer, and miscellaneous professionals. This segment provides commercial automobile liability and physical damage insurance to local, intermediate and long haul truckers, public transportation entities, and other types of specialty commercial automobile risks; incidental and related insurance coverages; inland marine coverages; management liability coverages, such as directors and officers liability insurance, fiduciary liability and coverages, employment practice liability, and for various classes of risks, including public and private businesses; and home business insurance products. The company's Property segment offers commercial property, cargo, hull, protection and indemnity, marine liability, inland marine, homeowners' and dwelling fire, and other property insurance products. Its Surety segment offers commercial surety bonds for medium to large-sized businesses; small bonds for businesses and individuals; and bonds for small to medium-sized contractors. The company also engages in various reinsurance coverages. It markets its products through branch offices, wholesale and retail brokers, carrier partners, and underwriting and independent agents. RLI Corp. was incorporated in 1965 and is headquartered in Peoria, Illinois.

About Huize

Huize Holding Limited, together with its subsidiaries, offers online insurance product and service platform through various internet channels in the People's Republic of China. The company provides life and health insurance products, such as critical illness, illness and disease, annuity, and term and whole life insurance products; and property and casualty insurance products, including travel, individual casualty, and corporate liability insurance products. It also offers offline insurance intermediary and brokerage services. The company also provides digital and technology development services; investment, technology development, internet information, management, and financial consulting services; business management and catering services; and insurance agency services. Huize Holding Limited was founded in 2006 and is headquartered in Shenzhen, China.