Head-To-Head Survey: Old Republic International (NYSE:ORI) & Hippo (NYSE:HIPO)

Hippo (NYSE:HIPO) and Old Republic International (NYSE:ORI) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Profitability

This table compares Hippo and Old Republic International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hippo	12.31%	-2.24%	-0.48%
Old Republic International	10.24%	16.21%	3.38%

Risk and Volatility

Hippo has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, Old Republic International has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Institutional and Insider Ownership

43.0% of Hippo shares are held by institutional investors. Comparatively, 70.9% of Old Republic International shares are held by institutional investors. 10.8% of Hippo shares are held by insiders. Comparatively, 1.1% of Old Republic International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Hippo and Old Republic International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hippo	$468.60 million	1.42	$57.70 million	$2.14	11.98
Old Republic International	$9.14 billion	1.09	$935.40 million	$3.39	11.92

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Hippo and Old Republic International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hippo	0	3	4	0	2.57
Old Republic International	1	1	0	2	2.75

Hippo presently has a consensus target price of $37.25, suggesting a potential upside of 45.31%. Old Republic International has a consensus target price of $42.50, suggesting a potential upside of 5.19%. Given Hippo’s higher probable upside, research analysts plainly believe Hippo is more favorable than Old Republic International.

Summary

Old Republic International beats Hippo 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 Old Republic International

Old Republic International Corporation, through its subsidiaries, engages in the insurance underwriting and related services business primarily in the United States and Canada. It operates through three segments: General Insurance, Title Insurance, and Republic Financial Indemnity Group Run-off Business. The General Insurance segment offers aviation, commercial auto, commercial multi-peril, commercial property, general liability, home and auto warranty, inland marine, travel accident, and workers' compensation insurance products; and financial indemnity products for specialty coverages, including errors and omissions, fidelity, directors and officers, and surety. This segment provides its insurance products to businesses, state and local government, and other institutions in transportation, commercial construction, healthcare, education, retail and wholesale trade, forest products, energy, general manufacturing, and financial services industries. The Title Insurance segment offers lenders' and owners' policies to real estate purchasers and investors based upon searches of the public records. This segment also provides escrow closing and construction disbursement services; and real estate information products, national default management services, and various other services pertaining to real estate transfers and loan transactions. The Republic Financial Indemnity Group Run-off Business segment offers private mortgage insurance coverage that protects mortgage lenders and investors from default related losses on residential mortgage loans made primarily to homebuyers. Old Republic International Corporation was founded in 1923 and is based in Chicago, Illinois.