Analyzing Hippo (NYSE:HIPO) and Globe Life (NYSE:GL)

Globe Life (NYSE:GL) and Hippo (NYSE:HIPO) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Institutional and Insider Ownership

81.6% of Globe Life shares are owned by institutional investors. Comparatively, 43.0% of Hippo shares are owned by institutional investors. 2.1% of Globe Life shares are owned by insiders. Comparatively, 4.5% of Hippo shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globe Life	$6.18 billion	2.15	$1.16 billion	$15.06	11.48
Hippo	$507.20 million	1.68	$57.70 million	$4.65	6.95

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Globe Life and Hippo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globe Life	0	2	8	1	2.91
Hippo	0	2	3	2	3.00

Globe Life currently has a consensus target price of $191.67, suggesting a potential upside of 10.84%. Hippo has a consensus target price of $40.50, suggesting a potential upside of 25.25%. Given Hippo’s stronger consensus rating and higher probable upside, analysts plainly believe Hippo is more favorable than Globe Life.

Risk & Volatility

Globe Life has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Hippo has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Globe Life	19.58%	20.52%	3.96%
Hippo	23.92%	10.68%	2.32%

Summary

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

About Globe Life

Globe Life Inc., through its subsidiaries, provides various life and supplemental health insurance products, and annuities to lower middle- and middle-income families in the United States. The company operates in four segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments. It offers whole, term, and other life insurance products; Medicare supplement and supplemental health insurance products, such as accident, cancer, critical illness, heart, and intensive care plans; and single-premium and flexible-premium deferred annuities. The company sells its products through its direct to consumer division, exclusive agencies, and independent agents. The company was formerly known as Torchmark Corporation and changed its name to Globe Life Inc. in August 2019. Globe Life Inc. was founded in 1900 and is headquartered in McKinney, Texas.

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.