Willis Towers Watson Public (NASDAQ:WTW) and SelectQuote (NYSE:SLQT) Critical Comparison

Willis Towers Watson Public (NASDAQ:WTWGet Rating) and SelectQuote (NYSE:SLQTGet Rating) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Institutional and Insider Ownership

91.4% of Willis Towers Watson Public shares are owned by institutional investors. Comparatively, 81.2% of SelectQuote shares are owned by institutional investors. 12.0% of Willis Towers Watson Public shares are owned by company insiders. Comparatively, 10.3% of SelectQuote shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Willis Towers Watson Public and SelectQuote’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Willis Towers Watson Public 39.57% 13.43% 4.45%
SelectQuote -22.67% -32.30% -13.01%

Earnings and Valuation

This table compares Willis Towers Watson Public and SelectQuote’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Willis Towers Watson Public $9.00 billion 2.46 $4.22 billion $28.62 6.94
SelectQuote $937.82 million 0.43 $131.05 million ($1.14) -2.18

Willis Towers Watson Public has higher revenue and earnings than SelectQuote. SelectQuote is trading at a lower price-to-earnings ratio than Willis Towers Watson Public, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for Willis Towers Watson Public and SelectQuote, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Willis Towers Watson Public 1 2 0 0 1.67
SelectQuote 0 8 0 0 2.00

Willis Towers Watson Public currently has a consensus price target of $244.00, indicating a potential upside of 22.93%. SelectQuote has a consensus price target of $7.56, indicating a potential upside of 204.94%. Given SelectQuote’s stronger consensus rating and higher probable upside, analysts clearly believe SelectQuote is more favorable than Willis Towers Watson Public.

Volatility and Risk

Willis Towers Watson Public has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, SelectQuote has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Summary

Willis Towers Watson Public beats SelectQuote on 10 of the 13 factors compared between the two stocks.

About Willis Towers Watson Public (Get Rating)

Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company worldwide. It operates through two segments, Health, Wealth and Career; and and Risk and Broking. The company offers actuarial support, plan design, and administrative services for traditional pension and retirement savings plans; plan management consulting, broking, and administration services for health and group benefit programs; and benefits outsourcing services. It also provides advice, data, software, and products to address clients' total rewards and talent issues. In addition, the company offers risk advice, insurance brokerage, and consulting services in the areas of property and casualty, aerospace, construction, and marine. Further, it offers investment consulting and discretionary management services to insurance and reinsurance companies; insurance consulting and technology, risk and capital management, pricing and predictive modeling, financial and regulatory reporting, financial and capital modeling, merger and acquisition, outsourcing, and business management services; wholesale insurance broking services to retail and wholesale brokers; and underwriting and capital management, capital market, and advisory and brokerage services. Additionally, the company provides primary medical and ancillary benefit exchange, and outsourcing services to active employees and retirees in the group and individual markets, as well as delivers healthcare and reimbursement accounts, including health savings accounts, health reimbursement arrangements, flexible spending accounts, and other consumer-directed accounts. The company was formerly known as Willis Group Holdings Public Limited Company and changed its name to Willis Towers Watson Public Limited Company in January 2016. Willis Towers Watson Public Limited Company was founded in 1828 and is based in London, the United Kingdom.

About SelectQuote (Get Rating)

SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance policies to consumers from various insurance carriers in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related policies, including prescription drugs, dental, vision, and hearing plans; term life policies; and non-commercial auto and home property, and casualty policies. The company was incorporated in 1999 and is headquartered in Overland Park, Kansas.

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