Contrasting AIFU (NASDAQ:AIFU) & Hippo (NYSE:HIPO)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hippo	-13.21%	-29.27%	-6.42%
AIFU	N/A	N/A	N/A

Risk and Volatility

Hippo has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500. Comparatively, AIFU has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.

Earnings & Valuation

This table compares Hippo and AIFU”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	1.90	-$40.50 million	($2.18)	-12.89
AIFU	$247.81 million	0.08	$62.33 million	$0.73	9.51

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Hippo and AIFU, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hippo	0	1	2	1	3.00
AIFU	0	0	0	0	0.00

Hippo currently has a consensus target price of $31.50, indicating a potential upside of 12.06%. Given Hippo’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Hippo is more favorable than AIFU.

Institutional & Insider Ownership

43.0% of Hippo shares are held by institutional investors. Comparatively, 26.7% of AIFU shares are held by institutional investors. 10.8% of Hippo shares are held by insiders. Comparatively, 25.6% of AIFU shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Hippo beats AIFU on 8 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 AIFU

AIX, Inc. engages in the provision of agency services and insurance claims adjusting services. It operates through the Insurance Agency and Claims Adjusting segments. The Insurance Agency segment includes providing agency services for insurance products and life insurance products. The Claims Adjusting segment provides pre-underwriting survey services, claims adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The company was founded by Yin An Hu and Qiu Ping Lai in 1998 and is headquartered in Guangzhou, China.