Loews (NYSE:L) vs. Hippo (NYSE:HIPO) Head-To-Head Analysis

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

Profitability

This table compares Hippo and Loews’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hippo	21.30%	-5.89%	-1.28%
Loews	7.47%	7.43%	1.62%

Institutional and Insider Ownership

43.0% of Hippo shares are held by institutional investors. Comparatively, 58.3% of Loews shares are held by institutional investors. 10.8% of Hippo shares are held by insiders. Comparatively, 18.7% of Loews shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Hippo has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Loews has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Valuation & Earnings

This table compares Hippo and Loews”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hippo	$372.10 million	2.27	-$40.50 million	$3.62	9.34
Loews	$17.78 billion	1.20	$1.41 billion	$6.90	14.87

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

Analyst Recommendations

This is a summary of recent recommendations for Hippo and Loews, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hippo	1	2	4	0	2.43
Loews	0	0	1	0	3.00

Hippo presently has a consensus price target of $35.50, indicating a potential upside of 5.03%. Given Hippo’s higher probable upside, equities research analysts plainly believe Hippo is more favorable than Loews.

Summary

Loews beats Hippo on 9 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 Loews

Loews Corporation provides commercial property and casualty insurance in the United States and internationally. The company offers specialty insurance products, such as management and professional liability, and other coverage products; surety and fidelity bonds; property insurance products that include standard and excess property, marine and boiler, and machinery coverages; and casualty insurance products, such as workers' compensation, general and product liability, and commercial auto, surplus, and umbrella coverages. It also provides loss-sensitive insurance programs; and warranty, risk management, information, and claims administration services. The company markets its insurance products and services through independent agents, brokers, and managing general underwriters. In addition, the company is involved in the transportation and storage of natural gas and natural gas liquids, and hydrocarbons through natural gas pipelines covering approximately 13,455 miles of interconnected pipelines; 855 miles of NGL pipelines in Louisiana and Texas; 14 underground storage fields with an aggregate gas capacity of approximately 199.5 billion cubic feet of natural gas; and eleven salt dome caverns and related brine infrastructure for providing brine supply services. Further, the company operates a chain of 25 hotels; and develops, manufactures, and markets a range of extrusion blow-molded and injection molded plastic containers for customers in the pharmaceutical, dairy, household chemicals, food/nutraceuticals, industrial/specialty chemicals, and water and beverage/juice industries, as well as manufactures commodity and differentiated plastic resins from recycled plastic materials. Loews Corporation was incorporated in 1969 and is headquartered in New York, New York.