Trupanion (NASDAQ: TRUP) and Health Insurance Innovations (NASDAQ:HIIQ) are both small-cap financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.
Institutional & Insider Ownership
62.4% of Trupanion shares are held by institutional investors. Comparatively, 63.7% of Health Insurance Innovations shares are held by institutional investors. 31.2% of Trupanion shares are held by insiders. Comparatively, 30.0% of Health Insurance Innovations shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and price targets for Trupanion and Health Insurance Innovations, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Health Insurance Innovations||0||1||6||0||2.86|
Trupanion currently has a consensus target price of $27.20, indicating a potential downside of 9.63%. Health Insurance Innovations has a consensus target price of $32.00, indicating a potential upside of 33.06%. Given Health Insurance Innovations’ higher probable upside, analysts clearly believe Health Insurance Innovations is more favorable than Trupanion.
This table compares Trupanion and Health Insurance Innovations’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Health Insurance Innovations||5.98%||21.32%||13.25%|
Volatility and Risk
Trupanion has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, Health Insurance Innovations has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.
Earnings & Valuation
This table compares Trupanion and Health Insurance Innovations’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Trupanion||$188.23 million||4.80||-$6.89 million||($0.09)||-334.44|
|Health Insurance Innovations||$184.52 million||2.16||$4.51 million||$1.22||19.71|
Health Insurance Innovations has higher revenue, but lower earnings than Trupanion. Trupanion is trading at a lower price-to-earnings ratio than Health Insurance Innovations, indicating that it is currently the more affordable of the two stocks.
Health Insurance Innovations beats Trupanion on 9 of the 13 factors compared between the two stocks.
Trupanion, Inc. provides medical insurance plans for cats and dogs throughout the United States, Canada and Puerto Rico. The Company operates in two business segments: subscription business and other business. The subscription business segment includes monthly subscriptions for its medical plan, which are marketed to consumers. The other business segment includes other operations that are not directly marketed to consumers. The Company offers a software solution, Trupanion Express, which is designed to facilitate the direct payment of invoices to veterinary practices. Trupanion Express integrates with veterinarians’ practice management software, which allows the Company to access data. The Company’s subsidiaries include American Pet Insurance Company, Trupanion Managers USA, Inc., Trupanion Brokers Ontario, Inc. and Wyndham Insurance Company (SAC), Ltd.
About Health Insurance Innovations
Health Insurance Innovations, Inc. is a developer, distributor and cloud-based administrator of individual and family health insurance plans (IFPs) and supplemental products, which include short-term medical (STM) insurance plans, and guaranteed-issue and underwritten hospital indemnity plans. The Company also develops, distributes and administers supplemental products, which include a range of additional insurance and non-insurance products, such as pharmacy benefit cards, dental plans, vision plans, cancer/critical illness plans, deductible and gap protection plans, and life insurance policies that are purchased as supplements to IFP. The Company’s STM plans are provided up to six months, 11 months, or 364 days of health insurance coverage with a range of deductible and copay levels. Individual major medical (IMM) plans cover prescription drugs, pre-existing conditions and preventive care, while STM plans provide optional coverage for prescription drugs.
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