Goosehead Insurance (NASDAQ:GSHD) versus AIX (NASDAQ:AIFU) Critical Comparison

Goosehead Insurance (NASDAQ:GSHD) and AIX (NASDAQ:AIFU) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.

Earnings and Valuation

This table compares Goosehead Insurance and AIX”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Goosehead Insurance	$314.51 million	14.11	$14.14 million	$1.15	103.98
AIX	$2.36 billion	0.01	$39.50 million	$0.73	0.46

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

Volatility & Risk

Goosehead Insurance has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, AIX has a beta of -0.15, suggesting that its share price is 115% less volatile than the S&P 500.

Institutional and Insider Ownership

26.7% of AIX shares are held by institutional investors. 48.3% of Goosehead Insurance shares are held by insiders. Comparatively, 25.6% of AIX shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Goosehead Insurance and AIX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Goosehead Insurance	6.77%	284.41%	5.53%
AIX	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings for Goosehead Insurance and AIX, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Goosehead Insurance	1	4	5	0	2.40
AIX	0	0	0	0	0.00

Goosehead Insurance currently has a consensus price target of $109.10, indicating a potential downside of 8.76%. Given Goosehead Insurance’s stronger consensus rating and higher probable upside, analysts plainly believe Goosehead Insurance is more favorable than AIX.

Summary

Goosehead Insurance beats AIX on 11 of the 14 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 AIX

AIX, Inc. engages in the provision of agency services and insurance claims adjusting services. It operates through the Insurance Agency and Claims Adjusting segments. The Insurance Agency segment includes providing agency services for insurance products and life insurance products. The Claims Adjusting segment provides pre-underwriting survey services, claims adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The company was founded by Yin An Hu and Qiu Ping Lai in 1998 and is headquartered in Guangzhou, China.