Sompo (OTCMKTS:SMPNY – Get Free Report) and Goosehead Insurance (NASDAQ:GSHD – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.
Profitability
This table compares Sompo and Goosehead Insurance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sompo | 10.62% | 13.26% | 3.54% |
| Goosehead Insurance | 7.62% | -21.31% | 7.79% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Sompo and Goosehead Insurance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sompo | 0 | 0 | 0 | 0 | 0.00 |
| Goosehead Insurance | 0 | 6 | 7 | 0 | 2.54 |
Dividends
Sompo pays an annual dividend of $0.28 per share and has a dividend yield of 1.5%. Goosehead Insurance pays an annual dividend of $4.60 per share and has a dividend yield of 10.9%. Sompo pays out 13.7% of its earnings in the form of a dividend. Goosehead Insurance pays out 442.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation and Earnings
This table compares Sompo and Goosehead Insurance”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sompo | $35.81 billion | 0.98 | $2.79 billion | $2.05 | 9.13 |
| Goosehead Insurance | $365.30 million | 4.24 | $27.83 million | $1.04 | 40.67 |
Sompo has higher revenue and earnings than Goosehead Insurance. Sompo is trading at a lower price-to-earnings ratio than Goosehead Insurance, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Sompo has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Goosehead Insurance has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.
Summary
Goosehead Insurance beats Sompo on 8 of the 14 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 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.
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