Contrasting Waterdrop (WDH) and Its Competitors

Waterdrop (NYSE:WDH – Get Rating) is one of 36 publicly-traded companies in the “Insurance agents, brokers, & service” industry, but how does it contrast to its competitors? We will compare Waterdrop to related businesses based on the strength of its earnings, profitability, institutional ownership, dividends, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and target prices for Waterdrop and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waterdrop	0	1	3	0	2.75
Waterdrop Competitors	272	1138	1245	49	2.40

Waterdrop presently has a consensus price target of $8.17, indicating a potential upside of 444.44%. As a group, “Insurance agents, brokers, & service” companies have a potential upside of 26.00%. Given Waterdrop’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Waterdrop is more favorable than its competitors.

Institutional & Insider Ownership

0.2% of Waterdrop shares are owned by institutional investors. Comparatively, 72.9% of shares of all “Insurance agents, brokers, & service” companies are owned by institutional investors. 24.0% of shares of all “Insurance agents, brokers, & service” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Waterdrop and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Waterdrop	$503.08 million	-$247.01 million	-1.25
Waterdrop Competitors	$9.41 billion	$813.93 million	28.28

Waterdrop’s competitors have higher revenue and earnings than Waterdrop. Waterdrop is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Waterdrop and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waterdrop	-49.04%	-68.93%	-28.31%
Waterdrop Competitors	2.12%	13.89%	2.82%

Summary

Waterdrop competitors beat Waterdrop on 8 of the 11 factors compared.

Waterdrop Company Profile (Get Rating)

Waterdrop Inc. provides online insurance brokerage services to match and connect users with related insurance products underwritten by insurance companies in the People's Republic of China. It operates medical crowdfunding and mutual aid platforms. The company was founded in 2016 and is headquartered in Beijing, the People's Republic of China.