Head-To-Head Analysis: Health Insurance Innovations (HIIQ) vs. Fanhua (FANH)

Health Insurance Innovations (NASDAQ: HIIQ) and Fanhua (NASDAQ:FANH) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Dividends

Fanhua pays an annual dividend of $0.78 per share and has a dividend yield of 3.0%. Health Insurance Innovations does not pay a dividend.

Volatility and Risk

Health Insurance Innovations has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Fanhua has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.

Insider and Institutional Ownership

79.2% of Health Insurance Innovations shares are held by institutional investors. Comparatively, 15.6% of Fanhua shares are held by institutional investors. 55.9% of Health Insurance Innovations shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Health Insurance Innovations and Fanhua, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Health Insurance Innovations 0 0 8 0 3.00
Fanhua 0 0 0 0 N/A

Health Insurance Innovations currently has a consensus target price of $44.70, indicating a potential upside of 51.78%. Given Health Insurance Innovations’ higher possible upside, equities analysts plainly believe Health Insurance Innovations is more favorable than Fanhua.

Profitability

This table compares Health Insurance Innovations and Fanhua’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Health Insurance Innovations 6.17% 20.15% 13.11%
Fanhua 10.66% 11.91% 9.51%

Earnings and Valuation

This table compares Health Insurance Innovations and Fanhua’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Health Insurance Innovations $250.48 million 1.97 $17.88 million $1.20 24.54
Fanhua $628.39 million 2.40 $69.04 million N/A N/A

Fanhua has higher revenue and earnings than Health Insurance Innovations.

Summary

Health Insurance Innovations beats Fanhua on 7 of the 13 factors compared between the two stocks.

About Health Insurance Innovations

Health Insurance Innovations, Inc. operates as a cloud-based technology platform and distributor of individual and family health insurance plans, and supplemental products in the United States. It offers short-term medical plans that provides three months of health insurance coverage with various deductible and copay levels; health benefit insurance plans, which offer daily cash benefit for hospital treatment and doctor office visits, as well as accidental injury and death or dismemberment benefits; and supplemental insurance products, including pharmacy benefit cards, dental plans, vision plans, cancer/critical illness plans, deductible and gap protection plans, and life insurance policies. The company designs and structures individual and family health insurance plans, and supplemental products in concert with insurance carriers and discount benefit providers; and market them to individuals through a network of distributors. Health Insurance Innovations, Inc. was founded in 2008 and is based in Tampa, Florida.

About Fanhua

Fanhua Inc. distributes insurance products in China. It operates through three segments: Insurance Agency, Insurance Brokerage; and Claims Adjusting. The Insurance Agency segment provides property and casualty insurance products, including automobile, individual accident, travel, disability income, commercial property, construction, and other property and casualty products; and life insurance products that consist of individual whole life, individual term life, individual endowment life, and individual education annuity, as well as group life and participating insurance products. The Insurance Brokerage segment provides property and casualty, group life, liability, and credit insurance products to corporate clients; and offers risk management services to enterprises in various industries, as well as reinsurance brokerage services to insurance companies. Its products include commercial property, cargo, hull, liability, construction and erection, credit, extended warranty, and bank account crime insurance. The Claims Adjusting segment offers pre-underwriting survey, claims adjusting, disposal of residual value, loading and unloading supervision, and consulting services. The company also operates an online insurance marketplace baoxian.com, which allows customers to search for, and purchase a range of insurance products. In addition, it provides vehicle related value-added services; and distributes wealth management products. As of March 31, 2017, it consisted of 31 insurance agencies, 2 insurance brokerages, and 3 claims adjusting firms, with 959 sales and service outlets, 280,196 registered independent sales agents, 1,165 brokers, and 1,241 in-house claims adjustors. The company was formerly known as CNinsure Inc. and changed its name to Fanhua Inc. in December 2016. Fanhua Inc. was founded in 1998 and is headquartered in Guangzhou, China.

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