Contrasting EverQuote (NASDAQ:EVER) & Waterdrop (NYSE:WDH)

Waterdrop (NYSE:WDH) and EverQuote (NASDAQ:EVER) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Waterdrop and EverQuote, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waterdrop	0	2	0	0	2.00
EverQuote	0	1	3	2	3.17

Waterdrop currently has a consensus price target of $2.00, suggesting a potential upside of 13.31%. EverQuote has a consensus price target of $34.25, suggesting a potential upside of 27.61%. Given EverQuote’s stronger consensus rating and higher probable upside, analysts clearly believe EverQuote is more favorable than Waterdrop.

Institutional and Insider Ownership

2.0% of Waterdrop shares are owned by institutional investors. Comparatively, 91.5% of EverQuote shares are owned by institutional investors. 24.6% of Waterdrop shares are owned by insiders. Comparatively, 25.5% of EverQuote shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Waterdrop has a beta of -0.25, indicating that its stock price is 125% less volatile than the S&P 500. Comparatively, EverQuote has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Earnings & Valuation

This table compares Waterdrop and EverQuote”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waterdrop	$379.74 million	1.68	$50.35 million	$0.19	9.29
EverQuote	$500.19 million	1.93	$32.17 million	$1.43	18.77

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

Profitability

This table compares Waterdrop and EverQuote’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waterdrop	15.58%	9.99%	7.57%
EverQuote	8.36%	38.19%	25.60%

Summary

EverQuote beats Waterdrop on 13 of the 15 factors compared between the two stocks.

About Waterdrop

Waterdrop Inc., through its subsidiaries, provides online insurance brokerage services to match and connect users with related insurance products underwritten by insurance companies in the People's Republic of China. The company offers short-term health and long-term health and life insurance products and services. It also operates a medical crowdfunding platform. Waterdrop Inc. was founded in 2016 and is headquartered in Beijing, the People's Republic of China.

About EverQuote

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.