eHealth (NASDAQ: EHTH) and Kingstone Companies (NASDAQ:KINS) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Risk and Volatility

eHealth has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Kingstone Companies has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Institutional and Insider Ownership

90.2% of eHealth shares are owned by institutional investors. Comparatively, 47.7% of Kingstone Companies shares are owned by institutional investors. 3.3% of eHealth shares are owned by company insiders. Comparatively, 10.3% of Kingstone Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares eHealth and Kingstone Companies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
eHealth $182.74 million 2.40 -$4.31 million ($0.35) -67.48
Kingstone Companies $82.45 million 1.92 $15.52 million $1.07 13.93

Kingstone Companies has higher revenue, but lower earnings than eHealth. eHealth is trading at a lower price-to-earnings ratio than Kingstone Companies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares eHealth and Kingstone Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
eHealth -3.44% -5.64% -4.50%
Kingstone Companies 11.52% 12.81% 4.97%

Analyst Ratings

This is a breakdown of current recommendations for eHealth and Kingstone Companies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
eHealth 0 1 2 0 2.67
Kingstone Companies 0 0 1 0 3.00

eHealth presently has a consensus price target of $18.33, suggesting a potential downside of 22.38%. Kingstone Companies has a consensus price target of $16.00, suggesting a potential upside of 7.38%. Given Kingstone Companies’ stronger consensus rating and higher possible upside, analysts plainly believe Kingstone Companies is more favorable than eHealth.

Dividends

Kingstone Companies pays an annual dividend of $0.32 per share and has a dividend yield of 2.1%. eHealth does not pay a dividend. Kingstone Companies pays out 29.9% of its earnings in the form of a dividend.

Summary

Kingstone Companies beats eHealth on 9 of the 15 factors compared between the two stocks.

About eHealth

eHealth, Inc. provides a private online source of health insurance for individuals, families and small businesses. The Company is the parent company of eHealthInsurance, a private health insurance exchange where individuals, families and small businesses can compare health insurance products from various insurers side-by-side, and purchase and enroll in coverage online through its Websites (www.eHealth.com, www.eHealthInsurance.com, www.eHealthMedicare.com, www.Medicare.com and www.PlanPrescriber.com) or telephonically through its customer care centers. The Company also offers various online and pharmacy-based tools to help seniors navigate Medicare health insurance options, choose the right plan, and enroll in plans online or telephonically. It markets the availability of individual and family, small business and ancillary health insurance plans of various insurance carriers through its e-commerce platforms (www.eHealth.com and www.eHealthInsurance.com).

About Kingstone Companies

Kingstone Companies, Inc. offers property and casualty insurance products to small businesses and individuals in New York State. The Company offers these products through its subsidiary, Kingstone Insurance Company (KICO). KICO is a licensed property and casualty insurance company. The Company operates through property and casualty insurances segment, which offers a range of property and casualty policies to its producers. The Company underwrites its business utilizing the CLUE industry claims database, insurance scoring reports, physical inspection of risks and other individual risk underwriting tools. It writes homeowners and dwelling fire business in New York City and Long Island. The Company’s product lines include personal lines, commercial liability, commercial automobile, livery physical damage and other. Its personal lines consist of homeowners, dwelling fire, renters, equipment breakdown and service line endorsements and personal umbrella policies.

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