Hippo Holdings Inc. (HIPO) vs Heritage Insurance Holdings, Inc. (HRTG)

Hippo Holdings Inc. and Heritage Insurance Holdings, Inc. are both Insurance Property & Casualty companies. Heritage Insurance Holdings, Inc. is the larger, with a market value of $986.5M against $798.0M — 1.2× the size. Heritage Insurance Holdings, Inc. trades at the lower P/E: 4.7× against 6.4×. Hippo Holdings Inc. grew revenue faster over the last twelve months: 19.3% against 1.54%. Heritage Insurance Holdings, Inc. has the higher net margin (25.2% vs 23.9%) and the higher return on invested capital (489.1% vs 8.68%). Across the 22 metrics below, Heritage Insurance Holdings, Inc. leads on 15 and Hippo Holdings Inc. on 7.

Valuation

Metric HIPO HRTG Insurance Property & Casualty median
P/E 6.39 4.73 10.29
P/S 1.58 1.17 1.17
P/B 1.72 1.76 1.83
Price to free cash flow 14.61 3.32 7.48
EV/EBITDA 17.21 1.53 7.49
EV/Sales 1.14 0.55 1.13
Earnings yield 15.65% 21.16% 9.50%
Free cash flow yield 6.84% 30.13% 13.29%

Profitability

Metric HIPO HRTG Insurance Property & Casualty median
Gross margin 100.00% 45.39% 41.16%
Operating margin 6.62% 34.46% 15.09%
Net margin 23.92% 25.19% 11.51%
Free cash flow margin 11.47% 35.21% 17.59%
Return on equity 30.34% 45.27% 18.19%
Return on assets 6.03% 8.63% 3.74%
Return on invested capital 8.68% 489.08% 12.06%

Growth

Metric HIPO HRTG Insurance Property & Casualty median
Revenue growth (TTM) 19.34% 1.54% 8.69%
EPS growth (last fiscal year) 235.37% 214.43% —
Revenue growth, 5-year CAGR 55.46% 7.38% 9.23%
Net income growth, 5-year CAGR 0.00% 83.79% 10.09%

Health

Metric HIPO HRTG Insurance Property & Casualty median
Debt to equity 0.10 0.13 0.25
Current ratio 0.95 0.83 0.42
Net debt to EBITDA 38.15 (1.77) 0.08

Dividend

Metric HIPO HRTG Insurance Property & Casualty median
Dividend yield — 16.22% 2.79%
Payout ratio 0.00 0.00 0.27

Size

Metric HIPO HRTG Insurance Property & Casualty median
Market cap 798.01m 986.52m 2.44b

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