Head-To-Head Review: GoHealth (NASDAQ:GOCO) versus Primerica (NYSE:PRI)

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

Institutional and Insider Ownership

24.2% of GoHealth shares are owned by institutional investors. Comparatively, 90.9% of Primerica shares are owned by institutional investors. 34.0% of GoHealth shares are owned by company insiders. Comparatively, 0.6% of Primerica shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

GoHealth has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, Primerica has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GoHealth	-3.21%	-8.74%	-2.26%
Primerica	21.48%	32.42%	4.83%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoHealth	$822.44 million	0.17	-$2.93 million	($3.60)	-1.38
Primerica	$3.09 billion	2.88	$470.52 million	$20.24	13.55

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

Analyst Recommendations

This is a summary of current recommendations for GoHealth and Primerica, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoHealth	0	1	1	0	2.50
Primerica	0	5	2	0	2.29

GoHealth currently has a consensus price target of $12.00, indicating a potential upside of 140.96%. Primerica has a consensus price target of $315.29, indicating a potential upside of 14.95%. Given GoHealth’s stronger consensus rating and higher possible upside, analysts plainly believe GoHealth is more favorable than Primerica.

Summary

Primerica beats GoHealth on 10 of the 14 factors compared between the two stocks.

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.

About Primerica

Primerica, Inc., together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates in four segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities, and fixed indexed annuities. The Senior Health segment offers segregated funds; and medicare advantage and supplement plans. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense, and motor vehicle-related matters; ID theft defense services; auto and homeowners' insurance; home automation solutions; and insurance products, including supplemental and accidental death, and disability insurance. It distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.