Health Insurance Innovations (NASDAQ: HIIQ) and Trupanion (NASDAQ:TRUP) are both small-cap financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Earnings and Valuation

This table compares Health Insurance Innovations and Trupanion’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Health Insurance Innovations $184.52 million 2.18 $4.51 million $1.22 19.92
Trupanion $188.23 million 4.78 -$6.89 million ($0.09) -332.52

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.

Profitability

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%
Trupanion -1.05% -7.41% -3.73%

Analyst Recommendations

This is a breakdown of current recommendations for Health Insurance Innovations and Trupanion, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Health Insurance Innovations 0 1 6 0 2.86
Trupanion 0 1 5 0 2.83

Health Insurance Innovations presently has a consensus price target of $32.00, indicating a potential upside of 31.69%. Trupanion has a consensus price target of $27.20, indicating a potential downside of 9.12%. Given Health Insurance Innovations’ stronger consensus rating and higher probable upside, analysts plainly believe Health Insurance Innovations is more favorable than Trupanion.

Insider & Institutional Ownership

63.7% of Health Insurance Innovations shares are owned by institutional investors. Comparatively, 62.4% of Trupanion shares are owned by institutional investors. 30.0% of Health Insurance Innovations shares are owned by insiders. Comparatively, 31.2% of Trupanion shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Health Insurance Innovations has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Trupanion has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.

Summary

Health Insurance Innovations beats Trupanion on 10 of the 13 factors compared between the two stocks.

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.

About Trupanion

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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