Financial Survey: Acmat (OTCMKTS:ACMTA) & Waterdrop (NYSE:WDH)

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

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

Analyst Recommendations

This is a summary of recent recommendations 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 price target of $2.00, indicating a potential upside of 12.04%. Given Waterdrop’s stronger consensus rating and higher probable upside, equities analysts plainly believe Waterdrop is more favorable than Acmat.

Valuation & Earnings

This table compares Waterdrop and Acmat”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waterdrop	$379.74 million	1.70	$50.35 million	$0.19	9.39
Acmat	N/A	N/A	N/A	N/A	N/A

Waterdrop has higher revenue and earnings than Acmat.

Insider and Institutional Ownership

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

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.