Analyzing Sampo (OTCMKTS:SAXPY) & Hippo (NYSE:HIPO)

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

Institutional and Insider Ownership

0.0% of Sampo shares are held by institutional investors. Comparatively, 43.0% of Hippo shares are held by institutional investors. 4.5% of Hippo shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Sampo and Hippo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sampo	0	3	2	1	2.67
Hippo	0	2	3	2	3.00

Hippo has a consensus price target of $40.50, indicating a potential upside of 25.66%. Given Hippo’s stronger consensus rating and higher probable upside, analysts clearly believe Hippo is more favorable than Sampo.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sampo	N/A	18.91%	5.68%
Hippo	23.92%	10.68%	2.32%

Earnings and Valuation

This table compares Sampo and Hippo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sampo	$13.08 billion	8.04	$2.26 billion	$1.48	13.37
Hippo	$468.60 million	1.82	$57.70 million	$4.65	6.93

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

Volatility & Risk

Sampo has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, Hippo has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500.

Summary

Hippo beats Sampo on 9 of the 15 factors compared between the two stocks.

About Sampo

Sampo Oyj, together with its subsidiaries, engages in the provision of non-life insurance products and services in Finland, Sweden, Norway, Denmark, Estonia, Lithuania, Latvia, and the United Kingdom. The company operates through If, Topdanmark, Hastings, Mandatum, and Holding segments. It offers property, casualty, liability, accident, sickness, household, homeowner, motor, travel, marine, aviation, transport, forest, livestock, health, workers compensation, car, van, and bike insurance services, as well as reinsurance services. The company was founded in 1909 and is based in Helsinki, Finland.

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.