Analyzing XChange TEC.INC (NASDAQ:XHG) and Goosehead Insurance (NASDAQ:GSHD)

Goosehead Insurance (NASDAQ:GSHD) and XChange TEC.INC (NASDAQ:XHG) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Valuation & Earnings

This table compares Goosehead Insurance and XChange TEC.INC”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Goosehead Insurance	$314.51 million	13.20	$14.14 million	$1.15	96.78
XChange TEC.INC	$288.37 million	0.00	-$32.32 million	N/A	N/A

Goosehead Insurance has higher revenue and earnings than XChange TEC.INC.

Profitability

This table compares Goosehead Insurance and XChange TEC.INC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Goosehead Insurance	6.77%	284.41%	5.53%
XChange TEC.INC	N/A	N/A	N/A

Volatility and Risk

Goosehead Insurance has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, XChange TEC.INC has a beta of -0.67, suggesting that its share price is 167% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Goosehead Insurance and XChange TEC.INC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Goosehead Insurance	1	4	5	0	2.40
XChange TEC.INC	0	0	0	0	0.00

Goosehead Insurance presently has a consensus price target of $110.10, suggesting a potential downside of 1.08%. Given Goosehead Insurance’s stronger consensus rating and higher possible upside, analysts clearly believe Goosehead Insurance is more favorable than XChange TEC.INC.

Summary

Goosehead Insurance beats XChange TEC.INC on 10 of the 10 factors compared between the two stocks.

About Goosehead Insurance

Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC that engages in the provision of personal lines insurance agency services in the United States. The company offers homeowner’s, automotive, dwelling property, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services. As of December 31, 2023, it operated 1,415 franchise locations. The company was founded in 2003 and is headquartered in Westlake, Texas.

About XChange TEC.INC

XChange TEC.INC engages in the professional insurance agency business in the People’s Republic of China. The company provides a various insurance products underwritten by insurance companies, including state-owned property and casualty insurance companies, as well as various regional property and casualty insurance companies. It also offers automobile, life, health, group accident, and other property related insurances primarily to individual end consumers. In addition, the company operates a SaaS platform to offer comprehensive services to online customers. It sells insurance primarily through a network of external referral sources that include external registered sales representatives and strategic channel partners, as well as through the in-house sales force. The company was formerly known as FLJ Group Limited and changed its name to XChange TEC.INC in May 2024. XChange TEC.INC was founded in 2012 and is based in Shanghai, the People’s Republic of China.