Analyzing Hippo (NYSE:HIPO) and TWFG (NASDAQ:TWFG)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hippo	0	3	3	0	2.50
TWFG	1	3	3	1	2.50

Hippo currently has a consensus target price of $37.67, suggesting a potential upside of 43.43%. TWFG has a consensus target price of $26.50, suggesting a potential upside of 42.63%. Given Hippo’s higher possible upside, research analysts plainly believe Hippo is more favorable than TWFG.

Institutional and Insider Ownership

43.0% of Hippo shares are held by institutional investors. 10.8% of Hippo shares are held by insiders. Comparatively, 68.4% of TWFG shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Hippo has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, TWFG has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Profitability

This table compares Hippo and TWFG’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%
TWFG	3.11%	13.51%	11.06%

Earnings and Valuation

This table compares Hippo and TWFG”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hippo	$468.60 million	1.46	$57.70 million	$2.14	12.27
TWFG	$247.08 million	4.23	$7.96 million	$0.51	36.43

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

Summary

Hippo beats TWFG on 7 of the 13 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 TWFG

TWFG, Inc. operates an independent distribution platform for personal and commercial insurance products in the United States. Its personal and commercial insurance products include auto, home, renters, life, health, motorcycle, umbrella, boat, recreational vehicle, flood, wind, event, luxury item, general liability, property, business auto, workers’ compensation, business owner policy, and professional liability insurance products, as well as commercial bonds and group benefits. The company was founded in 2001 and is based in The Woodlands, Texas. TWFG, Inc. operates as a subsidiary of Bunch Family Holdings, LLC.