Hippo (NYSE:HIPO) and NI (NASDAQ:NODK) Critical Analysis

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NI	0	1	0	0	2.00
Hippo	0	3	3	1	2.71

Hippo has a consensus price target of $40.50, indicating a potential upside of 19.47%. Given Hippo’s stronger consensus rating and higher probable upside, analysts clearly believe Hippo is more favorable than NI.

Volatility and Risk

NI has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, Hippo has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NI	2.93%	3.18%	1.50%
Hippo	23.92%	10.68%	2.32%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NI	$285.05 million	1.06	-$10.41 million	$0.38	38.92
Hippo	$468.60 million	1.91	$57.70 million	$4.65	7.29

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

Insider & Institutional Ownership

21.9% of NI shares are held by institutional investors. Comparatively, 43.0% of Hippo shares are held by institutional investors. 1.0% of NI shares are held by company insiders. Comparatively, 4.5% of Hippo shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Hippo beats NI on 14 of the 15 factors compared between the two stocks.

About NI

NI Holdings, Inc. underwrites property and casualty insurance products in the United States. Its products include private passenger auto, non-standard automobile, homeowners, farm owners, crop hail and multi-peril crop, and liability insurance policies. The company was founded in 1946 and is headquartered in Fargo, North Dakota. NI Holdings, Inc. operates as a subsidiary of Nodak Mutual Group, Inc.

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.