Reviewing Hippo (NYSE:HIPO) & Atlantic American (NASDAQ:AAME)

Hippo (NYSE:HIPO) and Atlantic American (NASDAQ:AAME) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.

Analyst Recommendations

This is a summary of recent ratings and target prices for Hippo and Atlantic American, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hippo	0	2	3	2	3.00
Atlantic American	1	0	0	0	1.00

Hippo presently has a consensus price target of $40.50, indicating a potential upside of 31.11%. Given Hippo’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Hippo is more favorable than Atlantic American.

Volatility & Risk

Hippo has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Atlantic American has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Profitability

This table compares Hippo and Atlantic American’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%
Atlantic American	N/A	N/A	N/A

Valuation & Earnings

This table compares Hippo and Atlantic American”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hippo	$507.20 million	1.61	$57.70 million	$4.65	6.64
Atlantic American	$188.23 million	0.14	-$4.27 million	$0.22	5.91

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

Insider & Institutional Ownership

43.0% of Hippo shares are held by institutional investors. Comparatively, 5.5% of Atlantic American shares are held by institutional investors. 4.5% of Hippo shares are held by company insiders. Comparatively, 80.2% of Atlantic American shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Hippo beats Atlantic American 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 Atlantic American

Atlantic American Corporation, through its subsidiaries, provides life and health, and property and casualty insurance products in the United States. It operates through American Southern and Bankers Fidelity segments. The company offers property and casualty insurance products, including commercial automobile insurance coverage for state governments, local municipalities, and other motor pools and fleets; general liability; and inland marine insurance products. It also provides surety bond coverage for subdivision construction; school bus contracts; and performance and payment bonds. In addition, the company offers individual and group whole life insurance products; Medicare supplement insurance products; and other accident and health insurance products comprising various individual and group policies for the payment of standard benefits for the treatment of diagnosed cancer and other critical illnesses, as well as various other products, such as short-term nursing facility care, accident only, hospital indemnity, and disability coverages. It markets its products through independent agents and brokers. The company was founded in 1937 and is based in Atlanta, Georgia. Atlantic American Corporation is a subsidiary of Atlantic American / Delta Group.