Comparing Hippo (NYSE:HIPO) & Globe Life (NYSE:GL)
by Sarita Garza · The Markets DailyGlobe Life (NYSE:GL – Get Free Report) and Hippo (NYSE:HIPO – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.
Institutional & 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 company insiders. Comparatively, 4.5% of Hippo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Globe Life has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Hippo has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.
Valuation and Earnings
This table compares Globe Life and Hippo”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Globe Life | $5.99 billion | 2.19 | $1.16 billion | $15.06 | 11.36 |
| Hippo | $468.60 million | 1.80 | $57.70 million | $4.65 | 6.87 |
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.
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% |
Analyst Recommendations
This is a summary of recent ratings for Globe Life and Hippo, as provided by MarketBeat.com.
| 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 presently has a consensus target price of $191.67, indicating a potential upside of 12.03%. Hippo has a consensus target price of $40.50, indicating a potential upside of 26.80%. Given Hippo’s stronger consensus rating and higher possible upside, analysts plainly believe Hippo is more favorable than Globe Life.
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.