Analyzing Huize (NASDAQ:HUIZ) & Tiptree Financial (NASDAQ:TIPT)

Huize (NASDAQ:HUIZ) and Tiptree Financial (NASDAQ:TIPT) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.

Volatility and Risk

Huize has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Tiptree Financial has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Huize and Tiptree Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huize	1	1	0	0	1.50
Tiptree Financial	0	0	1	0	3.00

Huize presently has a consensus target price of $2.30, indicating a potential downside of 36.46%. Given Huize’s higher possible upside, analysts plainly believe Huize is more favorable than Tiptree Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Huize	1.40%	4.38%	2.04%
Tiptree Financial	2.77%	13.90%	1.63%

Insider and Institutional Ownership

37.8% of Tiptree Financial shares are held by institutional investors. 30.4% of Huize shares are held by insiders. Comparatively, 31.8% of Tiptree Financial shares are held by 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.

Earnings and Valuation

This table compares Huize and Tiptree Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huize	$171.10 million	0.21	-$90,000.00	$0.03	120.67
Tiptree Financial	$2.02 billion	0.34	$53.37 million	$1.26	14.56

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

Summary

Tiptree Financial beats Huize on 11 of the 14 factors compared between the two stocks.

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.

About Tiptree Financial

Tiptree Inc., through its subsidiaries, provides specialty insurance products and related services primarily in the United States. It operates through two segments: Insurance and Mortgage. The company offers niche; commercial lines insurance products, including professional liability, general liability, contractual liability protection, property and other short-tail, and alternative risks insurance products; and personal lines insurance products, such as credit protection surrounding loan payments. It also provides auto and consumer warranty programs, including mobile devices, consumer electronics, appliances, furniture; and vehicle service contracts, GAP, and ancillary products; as well as premium or warranty contract financing services, lead generation support, and business process outsourcing services. In addition, the company offers mortgage loans for institutional investors; asset management services; and maritime shipping and asset management services, as well as invests in shares. It markets its products through a network of independent insurance agents, consumer finance companies, online retailers, auto dealers, and regional big box retailers. The company was formerly known as Tiptree Financial Inc. and changed its name to Tiptree Inc. in December 2016. Tiptree Inc. was founded in 1978 and is headquartered in Greenwich, Connecticut.