First Acceptance (OTCMKTS:FACO) versus Hippo (NYSE:HIPO) Critical Analysis

First Acceptance (OTCMKTS:FACOGet Rating) and Hippo (NYSE:HIPOGet Rating) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Risk & Volatility

First Acceptance has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500. Comparatively, Hippo has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Acceptance 0 0 0 0 N/A
Hippo 0 1 3 0 2.75

Hippo has a consensus price target of $4.69, indicating a potential upside of 174.27%. Given Hippo’s higher probable upside, analysts plainly believe Hippo is more favorable than First Acceptance.

Earnings and Valuation

This table compares First Acceptance and Hippo’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Acceptance $285.25 million 0.25 -$1.23 million ($0.04) -47.24
Hippo $91.20 million 10.62 -$371.40 million N/A N/A

First Acceptance has higher revenue and earnings than Hippo.

Profitability

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

Net Margins Return on Equity Return on Assets
First Acceptance -0.43% -1.19% -0.36%
Hippo N/A -40.23% -18.98%

Institutional & Insider Ownership

0.1% of First Acceptance shares are owned by institutional investors. Comparatively, 10.6% of Hippo shares are owned by institutional investors. 9.5% of First Acceptance shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Hippo beats First Acceptance on 6 of the 11 factors compared between the two stocks.

About First Acceptance (Get Rating)

First Acceptance Corp. is a holding company, which engages in the selling, servicing, and underwriting of non-standard personal automobile insurance and related products. The firm markets its services through the Acceptance Insurance, Yale Insurance, and Insurance Plus brands. Its products include bad credit automobile insurance, motorcycle insurance, military motorcycle insurance, roadside assistance, renters insurance, pet insurance, and life insurance. The company was founded in April 1969 and is headquartered in Nashville, TN.

About Hippo (Get Rating)

Hippo Holdings Inc. provides home protection insurance in the United States and the District of Columbia. Its insurance products include homeowners' insurance against risks of fire, wind, and theft; and commercial and personal lines of products. The company distributes insurance products and services through its technology platform; and offers its policies online, over the phone, or through licensed insurance agents. It provides care and protection for homeowners, as well as operates an integrated home protection platform. The company is headquartered in Palo Alto, California.

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