Critical Contrast: Reliance Global Group (NASDAQ:RELI) and eHealth (NASDAQ:EHTH)

Reliance Global Group (NASDAQ:RELI) and eHealth (NASDAQ:EHTH) are both financial services companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Valuation and Earnings

This table compares Reliance Global Group and eHealth’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reliance Global Group	$17.99 million	N/A	N/A	N/A	N/A
eHealth	$405.36 million	0.56	-$88.72 million	($3.50)	-2.31

Reliance Global Group has higher earnings, but lower revenue than eHealth.

Profitability

This table compares Reliance Global Group and eHealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reliance Global Group	N/A	N/A	N/A
eHealth	-15.85%	-8.77%	-5.13%

Institutional and Insider Ownership

63.2% of eHealth shares are owned by institutional investors. 2.1% of eHealth shares are owned 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Reliance Global Group and eHealth, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reliance Global Group	0	0	1	0	3.00
eHealth	0	4	1	0	2.20

Reliance Global Group currently has a consensus target price of $4.00, indicating a potential upside of 85.19%. eHealth has a consensus target price of $9.50, indicating a potential upside of 17.57%. Given Reliance Global Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Reliance Global Group is more favorable than eHealth.

Summary

Reliance Global Group beats eHealth on 5 of the 8 factors compared between the two stocks.

About Reliance Global Group

Reliance Global Group, Inc. engages in the acquisition and management of wholesale and retail insurance agencies in the United States. It provides healthcare and Medicare, personal and commercial, trucking, and insurance brokerage products. The company was formerly known as Ethos Media Network, Inc. and changed its name to Reliance Global Group, Inc. in October 2018. Reliance Global Group, Inc. was incorporated in 2013 and is headquartered in Lakewood, New Jersey.

About eHealth

eHealth, Inc. operates a health insurance marketplace that provides consumer engagement, education, and health insurance enrollment solutions in the United States. The company operates in two segments, Medicare; and Individual, Family and Small Business. Medicare segment offers sale of Medicare-related health insurance plans, which includes Medicare advantage, Medicare Supplement, and Medicare Part D prescription drug plans to Medicare-eligible customers including but not limited to, dental, and vision insurance, as well as advertising program. Its Individual, Family and Small Business segment engages in the sale of individual, family, and small business health insurance plans; and ancillary products to non-Medicare-eligible customers including but not limited to, dental, vision, and short and long term disability insurance. In addition, the company provides ecommerce platforms and consumer engagement solutions, which includes market leading information, decision support, customer engagement, and transactional services to group of health insurance consumers; and organize and present the insurance information in objective format to individuals, families, and small businesses to research, analyze, compare and purchase health insurance plans. Further, it markets health insurance plans through its websites, including eHealth.com, eHealthInsurance.com, eHealthMedicare.com, Medicare.com, PlanPrescriber.com, and GoMedigap.com. The company also offers online sponsorship and advertising, lead referral, technology licensing revenue, and performance of other services, such as conducting health risk assessments. eHealth, Inc. was incorporated in 1997 and is headquartered in Santa Clara, California.