Critical Contrast: Waterdrop (WDH) and Its Competitors

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

Analyst Ratings

This is a summary of recent recommendations for Waterdrop and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Waterdrop 0 1 3 0 2.75
Waterdrop Competitors 272 1142 1248 49 2.40

Waterdrop presently has a consensus price target of $8.17, suggesting a potential upside of 433.77%. As a group, “Insurance agents, brokers, & service” companies have a potential upside of 25.59%. Given Waterdrop’s stronger consensus rating and higher possible upside, analysts plainly believe Waterdrop is more favorable than its peers.

Profitability

This table compares Waterdrop and its peers’ 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%

Valuation and Earnings

This table compares Waterdrop and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Waterdrop $503.08 million -$247.01 million -1.32
Waterdrop Competitors $9.41 billion $813.93 million 28.25

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

Insider and Institutional Ownership

0.2% of Waterdrop shares are held by institutional investors. Comparatively, 72.9% of shares of all “Insurance agents, brokers, & service” companies are held by institutional investors. 23.3% of shares of all “Insurance agents, brokers, & service” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Waterdrop peers beat Waterdrop on 9 of the 12 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.

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