Connecture (CNXR) versus Blucora (BCOR) Critical Comparison

Connecture (OTCMKTS: CNXR) and Blucora (NASDAQ:BCOR) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Earnings and Valuation

This table compares Connecture and Blucora’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Connecture $81.89 million 0.10 -$26.53 million ($0.92) -0.37
Blucora $509.56 million 2.21 $27.03 million $0.58 41.55

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


This table compares Connecture and Blucora’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Connecture -19.38% N/A -17.70%
Blucora 5.31% 11.22% 5.83%

Institutional & Insider Ownership

35.2% of Connecture shares are owned by institutional investors. Comparatively, 97.0% of Blucora shares are owned by institutional investors. 68.6% of Connecture shares are owned by insiders. Comparatively, 14.1% of Blucora shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Connecture and Blucora, as reported by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Connecture 0 0 0 0 N/A
Blucora 0 0 3 0 3.00

Blucora has a consensus target price of $28.33, suggesting a potential upside of 17.57%. Given Blucora’s higher probable upside, analysts plainly believe Blucora is more favorable than Connecture.

Volatility and Risk

Connecture has a beta of 3.28, suggesting that its share price is 228% more volatile than the S&P 500. Comparatively, Blucora has a beta of -0.1, suggesting that its share price is 110% less volatile than the S&P 500.


Blucora beats Connecture on 11 of the 13 factors compared between the two stocks.

About Connecture

Connecture, Inc. provides a Web-based consumer shopping, enrollment and retention platform for health insurance distribution. The Company caters its services to health insurance marketplace operators, such as health plans, brokers and exchange operators. It operates through four segments: Enterprise/Commercial, Enterprise/State, Medicare and Private Exchange. The Enterprise/Commercial segment offers insurance distribution solutions to health plans. The Enterprise/State segment offers the sales automation solutions to state Governments, which allow its customers to offer customized individual and small group exchanges. The Medicare segment offers Web-based Medicare plan comparison, prescription drug comparison and enrollment tools for health plans, pharmacy benefit managers, pharmacies, field marketing organizations and call centers. The Private Exchange segment offers defined-contribution benefit exchange solutions to benefit consultants, brokers, exchange operators and aggregators.

About Blucora

Blucora, Inc. is a provider of technology-enabled financial solutions to consumers, small business owners and tax professionals. The Company operates through the Wealth Management and Tax Preparation segments. The Company’s Wealth Management segment consists of HD Vest, which provides financial advisors with an integrated platform of brokerage, investment advisory and insurance services to assist in making each financial advisor a financial service center for his/her clients The Company’s Tax Preparation segment provides digital do-it-yourself (DDIY) tax preparation solutions for consumers, small business owners and tax professionals. TaxAct, a provider of digital tax preparation solutions. HD Vest’s specialized model provides an open-architecture investment platform and technology tools to help financial advisors identify investment opportunities for their clients. TaxAct offers pricing and packaging options for tax professionals.

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