SelectQuote (NYSE:SLQT – Get Free Report) and Old Republic International (NYSE:ORI – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Volatility & Risk
SelectQuote has a beta of 2.01, indicating that its stock price is 101% more volatile than the S&P 500. Comparatively, Old Republic International has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.
Valuation & Earnings
This table compares SelectQuote and Old Republic International”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SelectQuote | $1.57 billion | 0.06 | $62.19 million | ($0.03) | -17.03 |
| Old Republic International | $9.14 billion | 1.05 | $935.40 million | $4.44 | 9.01 |
Old Republic International has higher revenue and earnings than SelectQuote. SelectQuote 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.
Institutional and Insider Ownership
34.6% of SelectQuote shares are held by institutional investors. Comparatively, 70.9% of Old Republic International shares are held by institutional investors. 11.6% of SelectQuote shares are held by insiders. Comparatively, 1.3% of Old Republic International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares SelectQuote and Old Republic International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SelectQuote | 4.61% | 22.48% | 6.06% |
| Old Republic International | 11.19% | 12.13% | 2.36% |
Analyst Recommendations
This is a summary of recent recommendations for SelectQuote and Old Republic International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SelectQuote | 1 | 2 | 0 | 1 | 2.25 |
| Old Republic International | 0 | 2 | 2 | 0 | 2.50 |
SelectQuote currently has a consensus target price of $3.00, suggesting a potential upside of 487.08%. Old Republic International has a consensus target price of $43.50, suggesting a potential upside of 8.71%. Given SelectQuote’s higher probable upside, equities research analysts clearly believe SelectQuote is more favorable than Old Republic International.
Summary
Old Republic International beats SelectQuote on 9 of the 15 factors compared between the two stocks.
About SelectQuote
SelectQuote, Inc. (NYSE: SLQT) operates a technology-enabled insurance distribution platform that helps consumers compare and purchase insurance products from third-party carriers. The company combines digital tools, proprietary data and licensed agents to connect customers with coverage suited to their needs. SelectQuote’s primary business is its Senior segment, which provides access to Medicare Advantage, Medicare Supplement and prescription drug plans. The company has also historically offered life insurance, as well as auto and home insurance, through its Life and Auto & Home businesses.
About Old Republic International
Old Republic International Corporation is an insurance holding company founded in 1923. Through its insurance subsidiaries, the company provides coverage primarily to businesses and other organizations, as well as title insurance services for real estate transactions. Its General Insurance business offers products including workers’ compensation, commercial automobile, general liability, property and other specialty coverages. Its Title Insurance business provides title policies and related services to homebuyers, businesses, lenders and other participants in residential and commercial real estate transactions.
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