Health Insurance Innovations (NASDAQ: HIIQ) and Trupanion (NASDAQ:TRUP) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Valuation and Earnings
This table compares Health Insurance Innovations and Trupanion’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Health Insurance Innovations||$184.52 million||2.13||$4.51 million||$1.19||20.00|
|Trupanion||$188.23 million||4.81||-$6.89 million||($0.09)||-334.74|
Health Insurance Innovations has higher earnings, but lower revenue 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.
Institutional and Insider Ownership
68.1% of Health Insurance Innovations shares are held by institutional investors. Comparatively, 63.3% of Trupanion shares are held by institutional investors. 30.0% of Health Insurance Innovations shares are held by insiders. Comparatively, 31.2% of Trupanion 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.
Risk & Volatility
Health Insurance Innovations has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Trupanion has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500.
This table compares Health Insurance Innovations and Trupanion’s 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%|
This is a breakdown of current ratings and recommmendations for Health Insurance Innovations and Trupanion, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Health Insurance Innovations||0||1||6||0||2.86|
Health Insurance Innovations presently has a consensus price target of $32.00, suggesting a potential upside of 34.45%. Trupanion has a consensus price target of $27.20, suggesting a potential downside of 9.72%. Given Health Insurance Innovations’ stronger consensus rating and higher probable upside, equities analysts clearly believe Health Insurance Innovations is more favorable than Trupanion.
Health Insurance Innovations beats Trupanion on 10 of the 13 factors compared between the two stocks.
Health Insurance Innovations Company Profile
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.
Trupanion Company Profile
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.
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