Goosehead Insurance (NASDAQ:GSHD – Get Free Report) and Sompo (OTCMKTS:SMPNY – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.
Volatility & Risk
Goosehead Insurance has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500. Comparatively, Sompo has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.
Valuation & Earnings
This table compares Goosehead Insurance and Sompo”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Goosehead Insurance | $365.30 million | 4.25 | $27.83 million | $1.04 | 40.81 |
| Sompo | $35.81 billion | 1.01 | $2.79 billion | $2.05 | 9.43 |
Sompo has higher revenue and earnings than Goosehead Insurance. Sompo is trading at a lower price-to-earnings ratio than Goosehead Insurance, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Goosehead Insurance and Sompo, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Goosehead Insurance | 0 | 6 | 7 | 0 | 2.54 |
| Sompo | 0 | 0 | 0 | 0 | 0.00 |
Goosehead Insurance presently has a consensus target price of $77.60, suggesting a potential upside of 82.85%. Given Goosehead Insurance’s stronger consensus rating and higher probable upside, research analysts plainly believe Goosehead Insurance is more favorable than Sompo.
Profitability
This table compares Goosehead Insurance and Sompo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Goosehead Insurance | 7.62% | -21.31% | 7.79% |
| Sompo | 10.62% | 13.26% | 3.54% |
Summary
Goosehead Insurance beats Sompo on 7 of the 12 factors compared between the two stocks.
About Goosehead Insurance
Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC that engages in the provision of personal lines insurance agency services in the United States. The company offers homeowner’s, automotive, dwelling property, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services. As of December 31, 2023, it operated 1,415 franchise locations. The company was founded in 2003 and is headquartered in Westlake, Texas.
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.
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