Contrasting Huize (NASDAQ:HUIZ) & RLI (NYSE:RLI)

Huize (NASDAQ:HUIZ) and RLI (NYSE:RLI) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Valuation & Earnings

This table compares Huize and RLI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huize	$226.26 million	0.08	$580,000.00	$0.03	57.67
RLI	$1.88 billion	2.98	$403.34 million	$4.76	12.83

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

Institutional and Insider Ownership

77.9% of RLI shares are held by institutional investors. 30.4% of Huize shares are held by company insiders. Comparatively, 2.4% of RLI shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Huize has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, RLI has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.

Profitability

This table compares Huize and RLI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huize	N/A	N/A	N/A
RLI	22.22%	17.61%	5.03%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Huize and RLI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huize	1	0	0	0	1.00
RLI	2	3	1	0	1.83

RLI has a consensus price target of $62.00, indicating a potential upside of 1.49%. Given RLI’s stronger consensus rating and higher possible upside, analysts clearly believe RLI is more favorable than Huize.

Summary

RLI beats Huize on 11 of the 14 factors compared between the two stocks.

About Huize

Huize Holding Limited, together with its subsidiaries, offers online insurance product and service platform through various internet channels in the People's Republic of China. The company provides life and health insurance products, such as critical illness, illness and disease, annuity, and term and whole life insurance products; and property and casualty insurance products, including travel, individual casualty, and corporate liability insurance products. It also offers offline insurance intermediary and brokerage services. The company also provides digital and technology development services; investment, technology development, internet information, management, and financial consulting services; business management and catering services; and insurance agency services. Huize Holding Limited was founded in 2006 and is headquartered in Shenzhen, China.

About RLI

RLI Corp., an insurance holding company, underwrites property and casualty insurance. Its Casualty segment provides commercial and personal coverage products; and general liability products, such as coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, and mercantile. It also offers coverages for security guards and environmental liability for underground storage tanks, contractors and asbestos, and environmental remediation specialists; and professional liability coverages for errors and omission coverage for small to medium-sized design, technical, computer, and miscellaneous professionals. This segment provides commercial automobile liability and physical damage insurance to local, intermediate and long haul truckers, public transportation entities, and other types of specialty commercial automobile risks; incidental and related insurance coverages; inland marine coverages; management liability coverages, such as directors and officers liability insurance, fiduciary liability and coverages, employment practice liability, and for various classes of risks, including public and private businesses; and home business insurance products. The company's Property segment offers commercial property, cargo, hull, protection and indemnity, marine liability, inland marine, homeowners' and dwelling fire, and other property insurance products. Its Surety segment offers commercial surety bonds for medium to large-sized businesses; small bonds for businesses and individuals; and bonds for small to medium-sized contractors. The company also engages in various reinsurance coverages. It markets its products through branch offices, wholesale and retail brokers, carrier partners, and underwriting and independent agents. RLI Corp. was incorporated in 1965 and is headquartered in Peoria, Illinois.