Critical Contrast: Hippo (HIPO) and The Competition

Hippo (NYSE:HIPO – Get Rating) is one of 94 publicly-traded companies in the “Fire, marine, & casualty insurance” industry, but how does it compare to its competitors? We will compare Hippo to related companies based on the strength of its risk, earnings, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Hippo and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hippo	0	1	3	0	2.75
Hippo Competitors	751	3197	2773	165	2.34

Hippo presently has a consensus target price of $4.69, suggesting a potential upside of 223.45%. As a group, “Fire, marine, & casualty insurance” companies have a potential upside of 18.66%. Given Hippo’s stronger consensus rating and higher possible upside, analysts plainly believe Hippo is more favorable than its competitors.

Valuation & Earnings

This table compares Hippo and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hippo	$91.20 million	-$371.40 million	-0.23
Hippo Competitors	$13.34 billion	$2.84 billion	70.72

Hippo’s competitors have higher revenue and earnings than Hippo. Hippo is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hippo	-246.66%	-37.80%	-18.72%
Hippo Competitors	-0.62%	3.32%	0.86%

Risk & Volatility

Hippo has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500. Comparatively, Hippo’s competitors have a beta of 0.77, meaning that their average share price is 23% less volatile than the S&P 500.

Insider and Institutional Ownership

35.2% of Hippo shares are owned by institutional investors. Comparatively, 59.6% of shares of all “Fire, marine, & casualty insurance” companies are owned by institutional investors. 13.4% of shares of all “Fire, marine, & casualty insurance” companies 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.

Summary

Hippo competitors beat Hippo on 10 of the 13 factors compared.

About Hippo (Get Rating)

Hippo Holdings Inc. provides home protection insurance in the United States and the District of Columbia. Its insurance products include homeowners' insurance against risks of fire, wind, and theft; and commercial and personal lines of products. The company distributes insurance products and services through its technology platform; and offers its policies online, over the phone, or through licensed insurance agents. It provides care and protection for homeowners, as well as operates an integrated home protection platform. The company is headquartered in Palo Alto, California.