Analyzing Old Republic International (NYSE:ORI) & Hippo (NYSE:HIPO)

Old Republic International (NYSE:ORI) and Hippo (NYSE:HIPO) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Profitability

This table compares Old Republic International and Hippo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Old Republic International	10.24%	16.21%	3.38%
Hippo	12.31%	-2.24%	-0.48%

Analyst Ratings

This is a summary of current ratings for Old Republic International and Hippo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Old Republic International	1	1	1	1	2.50
Hippo	0	3	4	0	2.57

Old Republic International currently has a consensus price target of $42.50, indicating a potential upside of 6.08%. Hippo has a consensus price target of $37.25, indicating a potential upside of 47.49%. Given Hippo’s stronger consensus rating and higher probable upside, analysts plainly believe Hippo is more favorable than Old Republic International.

Insider and Institutional Ownership

70.9% of Old Republic International shares are held by institutional investors. Comparatively, 43.0% of Hippo shares are held by institutional investors. 1.1% of Old Republic International shares are held by company insiders. Comparatively, 10.8% of Hippo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Old Republic International and Hippo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Old Republic International	$9.14 billion	1.08	$935.40 million	$3.39	11.82
Hippo	$468.60 million	1.37	$57.70 million	$2.14	11.80

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

Volatility and Risk

Old Republic International has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Hippo has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500.

Summary

Old Republic International beats Hippo on 8 of the 15 factors compared between the two stocks.

About Old Republic International

Old Republic International Corporation, through its subsidiaries, engages in the insurance underwriting and related services business primarily in the United States and Canada. It operates through three segments: General Insurance, Title Insurance, and Republic Financial Indemnity Group Run-off Business. The General Insurance segment offers aviation, commercial auto, commercial multi-peril, commercial property, general liability, home and auto warranty, inland marine, travel accident, and workers' compensation insurance products; and financial indemnity products for specialty coverages, including errors and omissions, fidelity, directors and officers, and surety. This segment provides its insurance products to businesses, state and local government, and other institutions in transportation, commercial construction, healthcare, education, retail and wholesale trade, forest products, energy, general manufacturing, and financial services industries. The Title Insurance segment offers lenders' and owners' policies to real estate purchasers and investors based upon searches of the public records. This segment also provides escrow closing and construction disbursement services; and real estate information products, national default management services, and various other services pertaining to real estate transfers and loan transactions. The Republic Financial Indemnity Group Run-off Business segment offers private mortgage insurance coverage that protects mortgage lenders and investors from default related losses on residential mortgage loans made primarily to homebuyers. Old Republic International Corporation was founded in 1923 and is based in Chicago, Illinois.

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.