HCI Group vs Goosehead Insurance

This page compares HCI Group and Goosehead Insurance, examining business models, financial performance, and market context to help readers understand each company. It provides neutral, accessible analysis of their approaches, strengths, and market positioning, without recommendations or forecasts. Educational content, not financial advice.

About The Companies

HCI Group (HCI)

HCI Group Inc (HCI) is a US property and casualty insurance holding company primarily focused on homeowners and dwelling fire coverage in hurricane‑exposed markets, with a market capitalisation of about $2.55 billion. Investors should watch its underwriting performance, premium growth, reinsurance arrangements and reserve adequacy — these drive profitability alongside investment income. The company’s earnings can be volatile due to catastrophe losses, particularly from tropical storms and hurricanes, and regulatory or rate‑setting changes in key states. Capital management, access to reinsurance and claims handling are key operational levers. For long‑term investors, HCI offers exposure to insurance economics and pricing cycles, but it also carries concentration and event risk. This summary is educational and not personal investment advice; insurance shares can fall as well as rise and past performance is not a reliable guide to the future. Consider your risk tolerance and diversify appropriately.

Goosehead Insurance (GSHD)

Goosehead Insurance, ticker GSHD, operates a technology-enabled network of independent insurance agents and franchisees that sell personal and commercial property & casualty policies. The company generates revenue primarily from commissions and fees, benefitting from agent recruitment, renewal streams and cross-selling opportunities. At a market capitalisation of about $2.56bn, Goosehead positions itself as a scalable, low-capital-intensity distributor that aims to combine local advisory relationships with centralised technology and marketing. Investors should weigh growth prospects against execution risks: franchise recruitment, retention of high-producing agents, regulatory changes, and commission-rate pressure can affect results. Profitability has fluctuated as the business invests in expansion and technology. This summary is educational only and not personal investment advice; potential investors should consider their objectives, risk tolerance and seek independent financial advice before acting. Returns are not guaranteed and values can fall as well as rise.

Comparison Snapshot

Key Financial Metrics

HCI

Metric

GSHD

$2.43B

Market Cap

$2.87B

18.95%

Potential Profit

16.69%

Buy

Analyst Rating

Buy

Which Baskets Do They Appear In?

Climate-Risk Underwriters

These innovative companies are turning climate uncertainty into a measurable market opportunity. Our analysts have carefully selected insurtech pioneers who use advanced data and AI to manage environmental risks that traditional insurers avoid.

Published: June 17, 2025

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Which Baskets Do They Appear In?

Climate-Risk Underwriters

Published: June 17, 2025

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Investment Analysis

HCI Group

HCI

Pros

HCI Group reported a substantial earnings per share beat in Q3 2025 with EPS of $4.90 versus expectations, indicating strong profitability.
The company showed significant year-over-year profit growth with net income rising to $67.9 million in Q3 2025 from $9.4 million in the same quarter last year.
Operational efficiency and improved underwriting results contributed to improved pre-tax income of $90.6 million, highlighting management execution.

Considerations

HCI Group missed revenue expectations in Q3 2025, which led to moderate negative stock price reaction and concerns about top-line growth sustainability.
Despite profitability gains, recent revenue growth has been mixed and may indicate pressure on future expansion or market share.
The stock price declined slightly after earnings, suggesting investor caution in balancing strong earnings with revenue weaknesses.

Goosehead Insurance

GSHD

Pros

Goosehead Insurance offers a diverse range of insurance products including homeowner’s, auto, and personal lines, providing a broad market footprint.
The company operates as an insurance agency, which can benefit from growth in personal insurance markets and distribution leverage.
Goosehead’s focus on personal lines insurance could align with steady demand in the property and casualty insurance segment.

Considerations

Goosehead Insurance has exhibited a highly negative and volatile return on equity (ROE), with a TTM ROE of -53.03%, indicating poor profitability.
Historical average ROE figures show consistent underperformance compared to industry peers and other insurance companies.
The company’s financial performance raises concerns about operational efficiency and the ability to generate sustainable shareholder value.

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HCI Group

Pros

Considerations

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Pros

Considerations

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Frequently asked questions

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HCI Group vs Goosehead Insurance

About The Companies

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HCI Group

Pros

Considerations

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Pros

Considerations

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Frequently asked questions

What does it mean when a company reports an earnings per share (EPS) beat, and why is it considered important?

What should you look for when assessing revenue versus earnings in a comparison like this?

How does operating efficiency relate to underwriting results in the insurance sector?

What does a negative or volatile ROE indicate about a company like Goosehead Insurance?

Why is diversification of product lines relevant when comparing insurers like stock_2?

How should you interpret ‘top‑line growth sustainability’ in this context?

What market context should readers consider when evaluating insurers like stock_1 and stock_2?

How can investor sentiment react to earnings and revenue updates in this pairing?

What should a beginner look for when comparing earnings quality between these two stocks?

Is it important to separate short‑term earnings noise from longer‑term trends in this comparison?

What role do stated pros and cons play in understanding the stocks’ profiles?

What is the purpose of the educational disclaimer on this page?

About The Companies

Comparison Snapshot