Comparing Sampo (OTCMKTS:SAXPY) and Hippo (NYSE:HIPO)

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

Volatility and Risk

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

Earnings & Valuation

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

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

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.

Profitability

This table compares Hippo and Sampo’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%
Sampo	N/A	18.91%	5.68%

Insider and Institutional Ownership

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Hippo and Sampo, as provided by MarketBeat.com.

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

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

Summary

Hippo beats Sampo on 9 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 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.