Sompo (OTCMKTS:SMPNY) versus Hippo (NYSE:HIPO) Head-To-Head Analysis

Hippo (NYSE:HIPO) and Sompo (OTCMKTS:SMPNY) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Volatility & Risk

Hippo has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500. Comparatively, Sompo has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Hippo and Sompo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hippo	1	1	4	1	2.71
Sompo	0	0	0	0	0.00

Hippo currently has a consensus price target of $35.50, indicating a potential upside of 10.76%. Given Hippo’s stronger consensus rating and higher probable upside, research analysts clearly believe Hippo is more favorable than Sompo.

Earnings & Valuation

This table compares Hippo and Sompo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hippo	$372.10 million	2.18	-$40.50 million	$3.62	8.85
Sompo	$35.81 billion	0.76	$2.79 billion	$1.49	9.84

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

Institutional and Insider Ownership

43.0% of Hippo shares are held by institutional investors. 10.8% of Hippo shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hippo	21.30%	-5.89%	-1.28%
Sompo	8.14%	13.04%	2.83%

Summary

Hippo beats Sompo on 10 of the 15 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 Sompo

Sompo Holdings, Inc. provides property and casualty (P&C) insurance services in Japan and internationally. The company operates through Domestic P&C Insurance Business, Overseas Insurance Business, Domestic Life Insurance Business, and Nursing Care & Seniors Business segments. It offers various P&C insurance products, including automobile, fire, personal accident, and marine, as well as security, risk management, assistance, and warranty services; and life insurance products. The company also provides nursing care and seniors services; and customer security, health, and wellbeing support services. In addition, it offers asset management services; home remodeling services; and health support services comprising health guidance and employee assistance programs. The company was formerly known as Sompo Japan Nipponkoa Holdings, Inc. and changed its name to Sompo Holdings, Inc. in October 2016. The company was incorporated in 2010 and is headquartered in Tokyo, Japan.