MBIA (NYSE:MBI – Get Free Report) and Hippo (NYSE:HIPO – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.
Insider and Institutional Ownership
61.0% of MBIA shares are owned by institutional investors. Comparatively, 43.0% of Hippo shares are owned by institutional investors. 11.3% of MBIA shares are owned by company insiders. Comparatively, 10.8% of Hippo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings for MBIA and Hippo, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MBIA | 1 | 0 | 1 | 0 | 2.00 |
| Hippo | 0 | 3 | 3 | 0 | 2.50 |
Risk and Volatility
MBIA has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500. Comparatively, Hippo has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500.
Profitability
This table compares MBIA and Hippo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MBIA | -221.25% | N/A | -1.68% |
| Hippo | 12.31% | -2.24% | -0.48% |
Valuation and Earnings
This table compares MBIA and Hippo”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MBIA | $80.00 million | 3.71 | -$177.00 million | ($3.58) | -1.63 |
| Hippo | $468.60 million | 1.42 | $57.70 million | $2.14 | 11.97 |
Hippo has higher revenue and earnings than MBIA. MBIA is trading at a lower price-to-earnings ratio than Hippo, indicating that it is currently the more affordable of the two stocks.
Summary
Hippo beats MBIA on 9 of the 14 factors compared between the two stocks.
About MBIA
MBIA Inc. provides financial guarantee insurance services to public finance markets in the United States. It operates United States (U.S.) Public Finance Insurance, and International and Structured Finance Insurance segments. The company issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of the U.S. political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, housing authorities, and other similar agencies and obligations issued by private entities. It also insures the non-U.S. public finance and global structured finance, including asset-backed obligations; and sovereign-related and sub-sovereign bonds, and privately issued bonds used for the financing for utilities, toll roads, bridges, public transportation facilities, and other types of infrastructure projects, as well as offers third-party reinsurance services. MBIA Inc. was founded in 1973 and is headquartered in Purchase, New York.
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.
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