Contrasting NI (NASDAQ:NODK) & Hippo (NYSE:HIPO)

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

Institutional & Insider Ownership

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Hippo and NI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hippo	0	3	1	1	2.60
NI	0	1	0	0	2.00

Hippo currently has a consensus target price of $38.25, indicating a potential upside of 11.52%. Given Hippo’s stronger consensus rating and higher probable upside, analysts plainly believe Hippo is more favorable than NI.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hippo	$468.60 million	1.93	$57.70 million	$4.65	7.38
NI	$267.39 million	1.13	-$10.41 million	$0.38	39.03

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.

Volatility & Risk

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

Summary

Hippo beats NI on 14 of the 15 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 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.