Goosehead Insurance vs Allstate Which Is a Better Investment?

Goosehead Insurance and Allstate are two established players in the insurance industry, each with their own unique strengths and opportunities for growth. While Allstate is a well-known and long-standing company with a strong track record, Goosehead Insurance is a newer, more innovative player that is quickly gaining market share. Investors may be drawn to Allstate for its stability and consistent dividends, while Goosehead Insurance presents a more growth-oriented option with its rapid expansion and disruptive business model. Ultimately, both stocks offer potential for profit, but with different risk profiles and growth strategies.

Goosehead Insurance or Allstate?

When comparing Goosehead Insurance and Allstate, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Goosehead Insurance and Allstate.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Goosehead Insurance has a dividend yield of -%, while Allstate has a dividend yield of 1.91%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Goosehead Insurance reports a 5-year dividend growth of 0.00% year and a payout ratio of 36.11%. On the other hand, Allstate reports a 5-year dividend growth of 14.11% year and a payout ratio of 25.45%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Goosehead Insurance P/E ratio at 146.83 and Allstate's P/E ratio at 12.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Goosehead Insurance P/B ratio is 48.30 while Allstate's P/B ratio is 2.44.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Goosehead Insurance has seen a 5-year revenue growth of 1.46%, while Allstate's is 0.90%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goosehead Insurance's ROE at 34.67% and Allstate's ROE at 22.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $115.81 for Goosehead Insurance and $191.95 for Allstate. Over the past year, Goosehead Insurance's prices ranged from $50.47 to $130.39, with a yearly change of 158.35%. Allstate's prices fluctuated between $134.17 and $209.88, with a yearly change of 56.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.