Head-To-Head Contrast: GAINSCO (OTCMKTS:GANS) and Hippo (NYSE:HIPO)

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Hippo and GAINSCO, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hippo	0	1	2	0	2.67
GAINSCO	0	0	0	0	0.00

Hippo presently has a consensus target price of $28.00, indicating a potential upside of 7.90%. Given Hippo’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Hippo is more favorable than GAINSCO.

Institutional and Insider Ownership

43.0% of Hippo shares are held by institutional investors. 11.4% of Hippo shares are held by insiders. Comparatively, 73.5% of GAINSCO shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hippo	-37.94%	-36.38%	-8.36%
GAINSCO	N/A	N/A	N/A

Valuation & Earnings

This table compares Hippo and GAINSCO”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hippo	$372.10 million	1.75	-$273.10 million	($1.74)	-14.91
GAINSCO	N/A	N/A	N/A	N/A	N/A

GAINSCO has lower revenue, but higher earnings than Hippo.

Summary

Hippo beats GAINSCO on 5 of the 9 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 GAINSCO

GAINSCO, Inc. operates as a property and casualty insurance holding company. The company offers non-standard personal auto products, including coverage for third party liability, bodily injury, and physical damage, as well as collision and coverage for theft, physical damage, and other perils for an insured's vehicle. It is also involved in automotive sales and service, auto racing, and investment activities. The company offers its automobile insurance products under the GAINSCO Auto Insurance brand through independent partner agents and Website comparison shopping places. GAINSCO, Inc. was founded in 1978 and is based in Dallas, Texas.