Contrasting HealthEquity (NASDAQ:HQY) and MediaAlpha (NYSE:MAX)

HealthEquity (NASDAQ:HQYGet Free Report) and MediaAlpha (NYSE:MAXGet Free Report) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Institutional and Insider Ownership

99.6% of HealthEquity shares are held by institutional investors. Comparatively, 64.4% of MediaAlpha shares are held by institutional investors. 2.7% of HealthEquity shares are held by insiders. Comparatively, 9.6% of MediaAlpha shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

HealthEquity has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, MediaAlpha has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for HealthEquity and MediaAlpha, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HealthEquity 0 0 11 0 3.00
MediaAlpha 1 0 5 0 2.67

HealthEquity currently has a consensus price target of $95.73, indicating a potential upside of 15.63%. MediaAlpha has a consensus price target of $18.20, indicating a potential downside of 7.66%. Given HealthEquity’s stronger consensus rating and higher possible upside, equities analysts plainly believe HealthEquity is more favorable than MediaAlpha.

Valuation & Earnings

This table compares HealthEquity and MediaAlpha’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HealthEquity $999.59 million 7.11 $55.71 million $0.64 129.35
MediaAlpha $388.15 million 3.34 -$40.42 million ($0.89) -22.15

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

Profitability

This table compares HealthEquity and MediaAlpha’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HealthEquity 5.57% 6.91% 4.41%
MediaAlpha -10.41% N/A -27.85%

Summary

HealthEquity beats MediaAlpha on 12 of the 14 factors compared between the two stocks.

About HealthEquity

(Get Free Report)

HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, receive personalized benefit information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides investment platform; and online-only automated investment advisory services through Advisor, a Web-based tool. In addition, the company offers flexible spending accounts; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs. It serves clients through a direct sales force; benefits brokers and advisors; and a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. HealthEquity, Inc. was incorporated in 2002 and is based in Draper, Utah.

About MediaAlpha

(Get Free Report)

MediaAlpha, Inc., through its subsidiaries, operates an insurance customer acquisition platform in the United States. It optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. The company was founded in 2014 and is headquartered in Los Angeles, California.

Receive News & Ratings for HealthEquity Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for HealthEquity and related companies with MarketBeat.com's FREE daily email newsletter.