Comparing Waterdrop (NYSE:WDH) & Acmat (OTCMKTS:ACMTA)

Waterdrop (NYSE:WDH) and Acmat (OTCMKTS:ACMTA) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Earnings and Valuation

This table compares Waterdrop and Acmat”s gross 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
Acmat	N/A	N/A	N/A	N/A	N/A

Waterdrop has higher revenue and earnings than Acmat.

Profitability

This table compares Waterdrop and Acmat’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%
Acmat	N/A	N/A	N/A

Insider & Institutional Ownership

2.0% of Waterdrop shares are owned by institutional investors. 24.6% of Waterdrop shares are owned by insiders. Comparatively, 10.8% of Acmat shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Waterdrop and Acmat, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waterdrop	0	2	0	0	2.00
Acmat	0	0	0	0	0.00

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

Summary

Waterdrop beats Acmat on 8 of the 8 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 Acmat

ACMAT Corporation, through its subsidiaries, provides surety bonds primarily for construction contractors in the United States. The company offers surety bonds for prime, sub-prime, specialty trade, environmental, asbestos, and lead abatement contractors, as well as for miscellaneous obligations. It also provides miscellaneous surety comprising workers’ compensation, supply, subdivision, and license and permit bonds. The company was founded in 1950 and is based in Farmington, Connecticut.