Head to Head Comparison: EverQuote (NASDAQ:EVER) versus Sompo (OTCMKTS:SMPNY)

Sompo (OTCMKTS:SMPNY) and EverQuote (NASDAQ:EVER) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Analyst Ratings

This is a breakdown of current recommendations for Sompo and EverQuote, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sompo	0	0	0	0	0.00
EverQuote	0	1	3	2	3.17

EverQuote has a consensus target price of $33.75, indicating a potential upside of 37.81%. Given EverQuote’s stronger consensus rating and higher probable upside, analysts plainly believe EverQuote is more favorable than Sompo.

Insider and Institutional Ownership

91.5% of EverQuote shares are held by institutional investors. 25.5% of EverQuote shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Sompo and EverQuote”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sompo	$35.81 billion	0.85	$2.79 billion	$1.89	8.57
EverQuote	$644.66 million	1.37	$32.17 million	$1.43	17.13

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

Dividends

Sompo pays an annual dividend of $0.38 per share and has a dividend yield of 2.3%. EverQuote pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Sompo pays out 20.1% of its earnings in the form of a dividend. EverQuote pays out 16.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility and Risk

Sompo has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500. Comparatively, EverQuote has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Profitability

This table compares Sompo and EverQuote’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sompo	10.20%	15.63%	3.49%
EverQuote	8.36%	38.19%	25.60%

Summary

EverQuote beats Sompo on 12 of the 17 factors compared between the two stocks.

About Sompo

Sompo Holdings, Inc. provides property and casualty (P&C) insurance services in Japan and internationally. The company operates through Domestic P&C Insurance Business, Overseas Insurance Business, Domestic Life Insurance Business, and Nursing Care & Seniors Business segments. It offers various P&C insurance products, including automobile, fire, personal accident, and marine, as well as security, risk management, assistance, and warranty services; and life insurance products. The company also provides nursing care and seniors services; and customer security, health, and wellbeing support services. In addition, it offers asset management services; home remodeling services; and health support services comprising health guidance and employee assistance programs. The company was formerly known as Sompo Japan Nipponkoa Holdings, Inc. and changed its name to Sompo Holdings, Inc. in October 2016. The company was incorporated in 2010 and is headquartered in Tokyo, Japan.

About EverQuote

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.