Financial Analysis: Cheche Group (NASDAQ:CCG) versus HCI Group (NYSE:HCI)

Cheche Group (NASDAQ:CCG) and HCI Group (NYSE:HCI) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Volatility and Risk

Cheche Group has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500. Comparatively, HCI Group has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Cheche Group and HCI Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheche Group	1	2	0	0	1.67
HCI Group	0	2	5	0	2.71

HCI Group has a consensus target price of $241.67, suggesting a potential upside of 28.77%. Given HCI Group’s stronger consensus rating and higher possible upside, analysts plainly believe HCI Group is more favorable than Cheche Group.

Valuation and Earnings

This table compares Cheche Group and HCI Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheche Group	$430.40 million	0.06	-$2.47 million	($2.80)	-4.32
HCI Group	$900.95 million	2.59	$299.01 million	$23.20	8.09

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

Profitability

This table compares Cheche Group and HCI Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cheche Group	N/A	N/A	N/A
HCI Group	32.60%	28.80%	12.25%

Insider & Institutional Ownership

19.8% of Cheche Group shares are held by institutional investors. Comparatively, 87.0% of HCI Group shares are held by institutional investors. 1.4% of Cheche Group shares are held by company insiders. Comparatively, 18.5% of HCI Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

HCI Group beats Cheche Group on 14 of the 14 factors compared between the two stocks.

About Cheche Group

Cheche Group Inc. offer auto insurance technology platform. The company evolved into a comprehensive, data-driven technology platform which offers a full suite of services and products for digital insurance transactions and insurance SaaS solutions principally in China. Cheche Group Inc., formerly known as Prime Impact, is headquartered in Beijing, China.

About HCI Group

HCI Group, Inc., together with its subsidiaries, engages in the property and casualty insurance, insurance management, reinsurance, real estate, and information technology businesses in Florida. It provides residential insurance products, such as homeowners, fire, flood, and wind-only insurance to homeowners, condominium owners, and tenants for properties, as well as offers reinsurance programs. The company also owns and operates waterfront properties and retail shopping centers, and an office building, as well as commercial properties for investment purposes. In addition, it designs and develops web-based applications and products for mobile devices, including SAMS, an online policy administration platform; Harmony, a policy administration platform; ClaimColony, an end-to-end claims management platform; and AtlasViewer, a mapping and data visualization platform. The company was formerly known as Homeowners Choice, Inc. and changed its name to HCI Group, Inc. in May 2013. HCI Group, Inc. was incorporated in 2006 and is headquartered in Tampa, Florida.