GoHealth (NASDAQ:GOCO) & Jackson Financial (NYSE:JXN) Financial Review

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jackson Financial	$6.68 billion	1.11	$27.00 million	($0.35)	-312.16
GoHealth	$798.89 million	0.05	-$2.93 million	($15.86)	-0.09

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

Insider & Institutional Ownership

90.0% of Jackson Financial shares are owned by institutional investors. Comparatively, 24.2% of GoHealth shares are owned by institutional investors. 1.6% of Jackson 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Jackson Financial and GoHealth, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jackson Financial	0	5	1	1	2.43
GoHealth	1	2	1	0	2.00

Jackson Financial presently has a consensus price target of $113.00, suggesting a potential upside of 3.43%. GoHealth has a consensus price target of $5.00, suggesting a potential upside of 264.96%. Given GoHealth’s higher possible upside, analysts clearly believe GoHealth is more favorable than Jackson Financial.

Volatility and Risk

Jackson Financial has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, GoHealth has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jackson Financial	N/A	16.65%	0.48%
GoHealth	-26.95%	8.00%	1.65%

Summary

Jackson Financial beats GoHealth on 9 of the 14 factors compared between the two stocks.

About Jackson Financial

Jackson Financial Inc., through its subsidiaries, provides suite of annuities to retail investors in the United States. The company operates through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The Retail Annuities segment offers various retirement income and savings products, including variable, fixed index, fixed, and payout annuities, as well as registered index-linked annuities and lifetime income solutions. The Institutional Products segment provides traditional guaranteed investment contracts; funding agreements comprising agreements issued in conjunction with its participation in the U.S. federal home loan bank program; and medium-term funding agreement-backed notes. The Closed Life and Annuity Blocks segment offers various protection products, such as whole life, universal life, variable universal life, and term life insurance products, as well as fixed, fixed index, and payout annuities; and a block of group payout annuities. The company also offers investment management services. It sells its products through a distribution network that includes independent broker-dealers, wirehouses, regional broker-dealers, banks, independent registered investment advisors, third-party platforms, and insurance agents. The company was formerly known as Brooke (Holdco1) Inc. and changed its name to Jackson Financial Inc. in July 2020. Jackson Financial Inc. was incorporated in 2006 and is headquartered in Lansing, Michigan.

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.