Critical Review: SelectQuote (NYSE:SLQT) and Old Republic International (NYSE:ORI)

SelectQuote (NYSE:SLQT) and Old Republic International (NYSE:ORI) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Profitability

This table compares SelectQuote and Old Republic International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SelectQuote	4.61%	22.48%	6.06%
Old Republic International	11.19%	12.13%	2.36%

Analyst Ratings

This is a summary of current ratings for SelectQuote and Old Republic International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SelectQuote	1	2	0	1	2.25
Old Republic International	0	2	2	0	2.50

SelectQuote currently has a consensus price target of $3.00, indicating a potential upside of 487.08%. Old Republic International has a consensus price target of $43.50, indicating a potential upside of 8.71%. Given SelectQuote’s higher probable upside, equities research analysts plainly believe SelectQuote is more favorable than Old Republic International.

Valuation and Earnings

This table compares SelectQuote and Old Republic International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SelectQuote	$1.57 billion	0.06	$62.19 million	($0.03)	-17.03
Old Republic International	$9.14 billion	1.05	$935.40 million	$4.44	9.01

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

Institutional and Insider Ownership

34.6% of SelectQuote shares are owned by institutional investors. Comparatively, 70.9% of Old Republic International shares are owned by institutional investors. 11.6% of SelectQuote shares are owned by company insiders. Comparatively, 1.3% of Old Republic International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

SelectQuote has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500. Comparatively, Old Republic International has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Summary

Old Republic International beats SelectQuote on 9 of the 15 factors compared between the two stocks.

About SelectQuote

SelectQuote, Inc. (NYSE: SLQT) operates a technology-enabled insurance distribution platform that helps consumers compare and purchase insurance products from third-party carriers. The company combines digital tools, proprietary data and licensed agents to connect customers with coverage suited to their needs. SelectQuote’s primary business is its Senior segment, which provides access to Medicare Advantage, Medicare Supplement and prescription drug plans. The company has also historically offered life insurance, as well as auto and home insurance, through its Life and Auto & Home businesses.

About Old Republic International

Old Republic International Corporation is an insurance holding company founded in 1923. Through its insurance subsidiaries, the company provides coverage primarily to businesses and other organizations, as well as title insurance services for real estate transactions. Its General Insurance business offers products including workers’ compensation, commercial automobile, general liability, property and other specialty coverages. Its Title Insurance business provides title policies and related services to homebuyers, businesses, lenders and other participants in residential and commercial real estate transactions.