Financial Review: Hippo (NYSE:HIPO) and Allianz (OTCMKTS:ALIZY)

Allianz (OTCMKTS:ALIZY) 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 institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Risk and Volatility

Allianz has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Hippo has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allianz	5.69%	17.38%	1.06%
Hippo	21.30%	-5.89%	-1.28%

Insider and Institutional Ownership

0.0% of Allianz shares are held by institutional investors. Comparatively, 43.0% of Hippo shares are held by institutional investors. 10.8% 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 is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allianz	$194.56 billion	0.85	$10.75 billion	$3.01	14.41
Hippo	$450.10 million	1.74	-$40.50 million	$3.62	8.54

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

Analyst Recommendations

This is a summary of recent ratings for Allianz and Hippo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allianz	1	3	1	1	2.33
Hippo	1	1	4	1	2.71

Hippo has a consensus target price of $37.50, suggesting a potential upside of 21.31%. Given Hippo’s stronger consensus rating and higher probable upside, analysts plainly believe Hippo is more favorable than Allianz.

Summary

Hippo beats Allianz on 9 of the 14 factors compared between the two stocks.

About Allianz

Allianz SE, together with its subsidiaries, provides property-casualty insurance, life/health insurance, and asset management products and services worldwide. The company’s Property-Casualty segment offers various insurance products, including motor liability and own damage, accident, general liability, fire and property, legal expense, credit, and travel to private and corporate customers. Its Life/Health segment provides a range of life and health insurance products on an individual and a group basis, such as annuities, endowment and term insurance, and unit-linked and investment-oriented products, as well as private and supplemental health, and long-term care insurance products. The company’s Asset Management segment offers institutional and retail asset management products and services to third-party investors comprising equity and fixed income funds, and multi-assets; and alternative investment products that include real estate, infrastructure debt/equity, real assets, liquid alternatives, and solutions. Its Corporate and Other segment provides banking services for retail clients, as well as digital investment services. Allianz SE was founded in 1890 and is headquartered in Munich, Germany.

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.