Analyzing AIFU (NASDAQ:AIFU) & Hamilton Insurance Group (NYSE:HG)

Hamilton Insurance Group (NYSE:HG) and AIFU (NASDAQ:AIFU) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Earnings and Valuation

This table compares Hamilton Insurance Group and AIFU”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hamilton Insurance Group	$2.33 billion	1.11	$400.43 million	$4.20	6.26
AIFU	$247.81 million	0.03	$62.33 million	$14.60	0.17

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

Profitability

This table compares Hamilton Insurance Group and AIFU’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hamilton Insurance Group	15.95%	15.07%	4.46%
AIFU	N/A	N/A	N/A

Institutional & Insider Ownership

29.2% of Hamilton Insurance Group shares are held by institutional investors. Comparatively, 26.7% of AIFU shares are held by institutional investors. 17.5% of Hamilton Insurance Group shares are held by insiders. Comparatively, 25.6% of AIFU shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Hamilton Insurance Group has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, AIFU has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Hamilton Insurance Group and AIFU, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hamilton Insurance Group	0	2	7	1	2.90
AIFU	0	1	0	0	2.00

Hamilton Insurance Group currently has a consensus target price of $29.88, suggesting a potential upside of 13.70%. Given Hamilton Insurance Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Hamilton Insurance Group is more favorable than AIFU.

Summary

Hamilton Insurance Group beats AIFU on 13 of the 15 factors compared between the two stocks.

About Hamilton Insurance Group

Hamilton Insurance Group, Ltd., through its subsidiaries, provides underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company operates Hamilton Global Specialty, Hamilton Select, and Hamilton Re underwriting platforms. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property reinsurance and insurance; and specialty reinsurance solutions, including accident and health, aviation and space, crisis management, mortgage, financial lines, marine and energy, and multiline specialty. In addition, it offers accident and health, cyber, energy, environmental, financial lines, fine art and specie, kidnap and ransom, mergers and acquisitions, marine and energy liability, political risk and violence, professional liability, property binders, property direct and facultative, professional lines, space, upstream energy, excess casualty, war and terrorism, allied medical, management liability, medical professionals, general liability, products liability and contractors, and small business casualty insurance plans, as well as surety and treaty reinsurance products. The company was incorporated in 2013 and is headquartered in Pembroke, Bermuda.

About AIFU

AIX, Inc. engages in the provision of agency services and insurance claims adjusting services. It operates through the Insurance Agency and Claims Adjusting segments. The Insurance Agency segment includes providing agency services for insurance products and life insurance products. The Claims Adjusting segment provides pre-underwriting survey services, claims adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The company was founded by Yin An Hu and Qiu Ping Lai in 1998 and is headquartered in Guangzhou, China.