NI (NASDAQ:NODK – Get Free Report) and Hippo (NYSE:HIPO – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.
Profitability
This table compares NI and Hippo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NI | 2.93% | 3.18% | 1.50% |
| Hippo | 23.92% | 10.68% | 2.32% |
Earnings & Valuation
This table compares NI and Hippo”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NI | $285.05 million | 1.06 | -$10.41 million | $0.38 | 38.92 |
| Hippo | $468.60 million | 1.91 | $57.70 million | $4.65 | 7.29 |
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.
Analyst Ratings
This is a summary of recent recommendations and price targets for NI and Hippo, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NI | 0 | 1 | 0 | 0 | 2.00 |
| Hippo | 0 | 3 | 3 | 1 | 2.71 |
Hippo has a consensus price target of $40.50, suggesting a potential upside of 19.47%. Given Hippo’s stronger consensus rating and higher possible upside, analysts plainly believe Hippo is more favorable than NI.
Insider & Institutional Ownership
21.9% of NI shares are held by institutional investors. Comparatively, 43.0% of Hippo shares are held by institutional investors. 1.0% of NI shares are held by insiders. Comparatively, 4.5% of Hippo shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
NI has a beta of 0.31, indicating that its share price is 69% 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 NI on 14 of the 15 factors compared between the two stocks.
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.
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.
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