Critical Survey: Deep Yellow (OTCMKTS:DYLLF) and Hippo (NYSE:HIPO)

Deep Yellow (OTCMKTS:DYLLF) and Hippo (NYSE:HIPO) are both small-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Earnings and Valuation

This table compares Deep Yellow and Hippo’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deep Yellow	N/A	N/A	N/A	N/A	N/A
Hippo	$209.70 million	2.68	-$273.10 million	($11.62)	-1.99

Deep Yellow has higher earnings, but lower revenue than Hippo.

Risk & Volatility

Deep Yellow has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Hippo has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500.

Insider & Institutional Ownership

43.0% of Hippo shares are owned by institutional investors. 11.3% of Hippo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Deep Yellow	N/A	N/A	N/A
Hippo	-130.19%	-61.14%	-16.91%

Analyst Recommendations

This is a summary of recent ratings and price targets for Deep Yellow and Hippo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deep Yellow	0	0	0	0	N/A
Hippo	0	2	2	0	2.50

Hippo has a consensus price target of $17.33, indicating a potential downside of 25.00%. Given Hippo’s higher possible upside, analysts clearly believe Hippo is more favorable than Deep Yellow.

Summary

Hippo beats Deep Yellow on 6 of the 9 factors compared between the two stocks.

About Deep Yellow

Deep Yellow Limited, together with its subsidiaries, operates as a uranium exploration company in Namibia. The company holds a 100% interest in the Reptile project, which covers an area of 896 square kilometers (km2); 65% interest in the Nova Joint Venture covering an area of 599 km2; and 85% interest in the Yellow Dune Joint Venture covering an area of 190 km2. It is involved in the iron ore exploration and property investment businesses. The company was incorporated in 1985 and is headquartered in Subiaco, Australia.

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.