Sompo (OTCMKTS:SMPNY) vs. EverQuote (NASDAQ:EVER) Critical Comparison

EverQuote (NASDAQ:EVER) and Sompo (OTCMKTS:SMPNY) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Valuation & Earnings

This table compares EverQuote and Sompo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EverQuote	$500.19 million	1.71	$32.17 million	$1.43	16.61
Sompo	$35.81 billion	0.79	$2.79 billion	$1.49	10.17

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

Volatility and Risk

EverQuote has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Sompo has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Profitability

This table compares EverQuote and Sompo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EverQuote	8.36%	38.19%	25.60%
Sompo	8.14%	13.04%	2.83%

Analyst Recommendations

This is a summary of recent recommendations for EverQuote and Sompo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EverQuote	0	1	3	2	3.17
Sompo	0	0	0	0	0.00

EverQuote currently has a consensus price target of $33.75, indicating a potential upside of 42.11%. Given EverQuote’s stronger consensus rating and higher probable upside, equities research analysts plainly believe EverQuote is more favorable than Sompo.

Institutional & Insider Ownership

91.5% of EverQuote shares are held by institutional investors. 25.5% of EverQuote shares are held by 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.

Summary

EverQuote beats Sompo on 12 of the 15 factors compared between the two stocks.

About EverQuote

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.

About Sompo

Sompo Holdings, Inc. provides property and casualty (P&C) insurance services in Japan and internationally. The company operates through Domestic P&C Insurance Business, Overseas Insurance Business, Domestic Life Insurance Business, and Nursing Care & Seniors Business segments. It offers various P&C insurance products, including automobile, fire, personal accident, and marine, as well as security, risk management, assistance, and warranty services; and life insurance products. The company also provides nursing care and seniors services; and customer security, health, and wellbeing support services. In addition, it offers asset management services; home remodeling services; and health support services comprising health guidance and employee assistance programs. The company was formerly known as Sompo Japan Nipponkoa Holdings, Inc. and changed its name to Sompo Holdings, Inc. in October 2016. The company was incorporated in 2010 and is headquartered in Tokyo, Japan.