Comparing Manulife Financial (NYSE:MFC) & GoHealth (NASDAQ:GOCO)

Manulife Financial (NYSE:MFC) and GoHealth (NASDAQ:GOCO) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Insider and Institutional Ownership

52.6% of Manulife Financial shares are owned by institutional investors. Comparatively, 24.2% of GoHealth shares are owned by institutional investors. 0.0% of Manulife Financial shares are owned by company insiders. Comparatively, 34.0% of GoHealth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Manulife Financial has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, GoHealth has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500.

Profitability

This table compares Manulife Financial and GoHealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Manulife Financial	10.46%	15.77%	0.74%
GoHealth	-3.21%	-8.74%	-2.26%

Analyst Ratings

This is a summary of current ratings and target prices for Manulife Financial and GoHealth, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manulife Financial	0	1	2	0	2.67
GoHealth	0	1	1	0	2.50

Manulife Financial currently has a consensus price target of $47.50, indicating a potential upside of 56.25%. GoHealth has a consensus price target of $18.00, indicating a potential upside of 220.86%. Given GoHealth’s higher possible upside, analysts plainly believe GoHealth is more favorable than Manulife Financial.

Valuation and Earnings

This table compares Manulife Financial and GoHealth”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manulife Financial	$38.90 billion	1.33	$4.11 billion	$2.24	13.57
GoHealth	$798.89 million	0.17	-$2.93 million	($3.60)	-1.56

Manulife Financial has higher revenue and earnings than GoHealth. GoHealth is trading at a lower price-to-earnings ratio than Manulife Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Manulife Financial beats GoHealth on 11 of the 14 factors compared between the two stocks.

About Manulife Financial

Manulife Financial Corporation, together with its subsidiaries, provides financial products and services in the United States, Canada, Asia, and internationally. The company operates through Wealth and Asset Management Businesses; Insurance and Annuity Products; and Corporate and Other segments. The Wealth and Asset Management Businesses segment offers investment advice and solutions to retirement, retail, and institutional clients through multiple distribution channels, including agents and brokers affiliated with the company, independent securities brokerage firms and financial advisors pension plan consultants, and banks. The Insurance and Annuity Products segment provides deposit and credit products; and individual life insurance, individual and group long-term care insurance, and guaranteed and partially guaranteed annuity products through multiple distribution channels, including insurance agents, brokers, banks, financial planners, and direct marketing. The Corporate and Other segment is involved in the property and casualty reinsurance businesses; and run-off reinsurance operations, including variable annuities, and accident and health. The company also manages timberland and agricultural portfolios; and engages in insurance agency, investment counseling and dealer, portfolio and mutual fund management, property and casualty insurance, and mutual fund dealer businesses. In addition, it provides integrated banking products and services. The company was incorporated in 1887 and is headquartered in Toronto, Canada.

About GoHealth

GoHealth, Inc. operates as a health insurance marketplace and Medicare-focused digital health company in the United States. The company operates a technology platform that leverages machine-learning algorithms of insurance behavioral data to optimize the process for helping individuals find the health insurance plan for their specific needs. It provides Medicare plans, including Medicare Advantage, Medicare Supplement and Prescription Drug, and Medicare Special Needs Plans. The company also offers partner marketing services. It sells its products through carriers and online platform, as well as independent and external agencies. The company was founded in 2001 and is headquartered in Chicago, Illinois.