Chubb (NYSE:CB) and Hippo (NYSE:HIPO) Critical Analysis

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

Risk and Volatility

Hippo has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Chubb has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hippo	-240.20%	-56.30%	-19.30%
Chubb	12.47%	13.56%	3.44%

Analyst Ratings

This is a summary of current ratings and recommmendations for Hippo and Chubb, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hippo	0	2	3	0	2.60
Chubb	0	3	11	1	2.87

Hippo presently has a consensus price target of $27.38, indicating a potential upside of 172.12%. Chubb has a consensus price target of $242.79, indicating a potential upside of 21.37%. Given Hippo’s higher possible upside, equities analysts plainly believe Hippo is more favorable than Chubb.

Insider & Institutional Ownership

30.9% of Hippo shares are held by institutional investors. Comparatively, 86.3% of Chubb shares are held by institutional investors. 11.3% of Hippo shares are held by company insiders. Comparatively, 0.4% of Chubb shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Hippo and Chubb’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hippo	$119.70 million	1.99	-$333.40 million	($16.02)	-0.63
Chubb	$43.17 billion	1.90	$5.31 billion	$13.92	14.37

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

Summary

Chubb beats Hippo on 11 of the 15 factors compared between the two stocks.

About Hippo

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 personal and commercial insurance 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.

About Chubb

Chubb Limited provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, casualty, workers' compensation, package policies, risk management, financial lines, marine, construction, environmental, medical, cyber risk, surety, and excess casualty; and group accident and health insurance to large, middle market, and small commercial businesses. Its North America Personal P&C Insurance segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, and recreational marine insurance and services. The company's North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm and ranch property, and commercial agriculture products. Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction risk; and group accident and health, and traditional and specialty personal lines for corporations, middle markets, and small customers through retail brokers, agents, and other channels. The company's Global Reinsurance segment offers traditional and specialty reinsurance under the Chubb Tempest Re brand to property and casualty companies. Its Life Insurance segment provides protection and savings products comprising whole life, endowment plans, individual term life, group term life, medical and health, personal accident, credit life, universal life, and unit linked contracts. It markets its products primarily through insurance and reinsurance brokers. The company was formerly known as ACE Limited and changed its name to Chubb Limited in January 2016. Chubb Limited was incorporated in 1985 and is headquartered in Zurich, Switzerland.