Goosehead Insurance (NASDAQ:GSHD) versus Assurant (NYSE:AIZ) Financial Review

Goosehead Insurance (NASDAQ:GSHD) and Assurant (NYSE:AIZ) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings for Goosehead Insurance and Assurant, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Goosehead Insurance	1	5	7	0	2.46
Assurant	0	2	8	0	2.80

Goosehead Insurance currently has a consensus target price of $84.00, indicating a potential upside of 88.98%. Assurant has a consensus target price of $258.17, indicating a potential upside of 15.04%. Given Goosehead Insurance’s higher probable upside, equities research analysts clearly believe Goosehead Insurance is more favorable than Assurant.

Risk and Volatility

Goosehead Insurance has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Assurant has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Profitability

This table compares Goosehead Insurance and Assurant’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Goosehead Insurance	7.62%	-21.31%	7.79%
Assurant	6.81%	18.65%	2.92%

Insider and Institutional Ownership

92.7% of Assurant shares are held by institutional investors. 48.4% of Goosehead Insurance shares are held by insiders. Comparatively, 0.5% of Assurant shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Goosehead Insurance and Assurant”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Goosehead Insurance	$365.30 million	4.48	$30.43 million	$1.04	42.74
Assurant	$12.81 billion	0.88	$872.70 million	$16.97	13.22

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

About Goosehead Insurance

Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC that engages in the provision of personal lines insurance agency services in the United States. The company offers homeowner’s, automotive, dwelling property, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services. As of December 31, 2023, it operated 1,415 franchise locations. The company was founded in 2003 and is headquartered in Westlake, Texas.

About Assurant

Assurant, Inc., together with its subsidiaries, provides business services that supports, protects, and connects consumer purchases in North America, Latin America, Europe, and the Asia Pacific. The company operates through two segments: Global Lifestyle and Global Housing. The Global Lifestyle segment offers mobile device solutions, and extended service contracts and related services for consumer electronics and appliances, and credit and other insurance products; and vehicle protection, commercial equipment, and other related services. The Global Housing segment provides lender-placed homeowners, manufactured housing, and flood insurance; renters insurance and related products; and voluntary manufactured housing, and condominium and homeowners insurance products. The company was formerly known as Fortis, Inc. and changed its name to Assurant, Inc. in February 2004. Assurant, Inc. was founded in 1892 and is headquartered in Atlanta, Georgia.