Health Insurance Innovations (NASDAQ: HIIQ) and eHealth (NASDAQ:EHTH) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.
Valuation and Earnings
This table compares Health Insurance Innovations and eHealth’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Health Insurance Innovations||$250.48 million||2.29||$17.88 million||$1.20||28.54|
|eHealth||$172.35 million||2.52||-$25.41 million||($1.28)||-17.86|
Health Insurance Innovations has higher revenue and earnings than eHealth. eHealth is trading at a lower price-to-earnings ratio than Health Insurance Innovations, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
76.3% of Health Insurance Innovations shares are held by institutional investors. Comparatively, 88.2% of eHealth shares are held by institutional investors. 55.9% of Health Insurance Innovations shares are held by company insiders. Comparatively, 4.1% of eHealth shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Health Insurance Innovations and eHealth’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Health Insurance Innovations||6.17%||20.15%||13.11%|
Risk and Volatility
Health Insurance Innovations has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, eHealth has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Health Insurance Innovations and eHealth, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Health Insurance Innovations||0||0||8||0||3.00|
Health Insurance Innovations currently has a consensus price target of $44.70, suggesting a potential upside of 30.51%. eHealth has a consensus price target of $25.40, suggesting a potential upside of 11.11%. Given Health Insurance Innovations’ stronger consensus rating and higher probable upside, analysts clearly believe Health Insurance Innovations is more favorable than eHealth.
Health Insurance Innovations beats eHealth on 11 of the 14 factors compared between the two stocks.
Health Insurance Innovations Company Profile
Health Insurance Innovations, Inc. operates as a cloud-based technology platform and distributor of individual and family health insurance plans, and supplemental products in the United States. It offers short-term medical plans that provides three months of health insurance coverage with various deductible and copay levels; health benefit insurance plans, which offer daily cash benefit for hospital treatment and doctor office visits, as well as accidental injury and death or dismemberment benefits; and supplemental insurance products, including pharmacy benefit cards, dental plans, vision plans, cancer/critical illness plans, deductible and gap protection plans, and life insurance policies. The company designs and structures individual and family health insurance plans, and supplemental products in concert with insurance carriers and discount benefit providers; and market them to individuals through a network of distributors. Health Insurance Innovations, Inc. was founded in 2008 and is based in Tampa, Florida.
eHealth Company Profile
eHealth, Inc. provides private online health insurance exchange services to individuals, families, and small businesses in the United States and China. The company operates through two segments, Medicare; and Individual, Family and Small Business. Its e-commerce platforms organize and present health insurance information in various formats that enable individuals, families, and small businesses to research, analyze, compare, and purchase a range of health insurance plans. The company's Medicare-related health insurance plans include Medicare Advantage, Medicare Supplement, and Medicare part D prescription drug plans; and ancillary products, including dental, vision, life, and short and long term disability insurance plans. It markets health insurance plans through its Websites, such as eHealth.com, eHealthInsurance.com, eHealthMedicare.com, Medicare.com, PlanPrescriber.com, and GoMedigap.com, as well as through a network of marketing partners. The company also licenses its health insurance e-commerce technology that enables health insurance carriers and agents to market and distribute health insurance plans online; and provides online sponsorship and advertising services. eHealth, Inc. was incorporated in 1997 and is headquartered in Mountain View, California.
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