HealthEquity (NASDAQ: HQY) is one of 18 public companies in the “Medical Software & Technology Services” industry, but how does it contrast to its competitors? We will compare HealthEquity to similar businesses based on the strength of its profitability, institutional ownership, valuation, dividends, analyst recommendations, risk and earnings.

Volatility and Risk

HealthEquity has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, HealthEquity’s competitors have a beta of 1.33, meaning that their average stock price is 33% more volatile than the S&P 500.

Insider and Institutional Ownership

91.0% of HealthEquity shares are owned by institutional investors. Comparatively, 63.1% of shares of all “Medical Software & Technology Services” companies are owned by institutional investors. 29.0% of HealthEquity shares are owned by insiders. Comparatively, 24.4% of shares of all “Medical Software & Technology Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares HealthEquity and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
HealthEquity $202.47 million $61.84 million 70.67
HealthEquity Competitors $376.98 million $34.79 million 8.70

HealthEquity’s competitors have higher revenue, but lower earnings than HealthEquity. HealthEquity is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and recommmendations for HealthEquity and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HealthEquity 0 1 8 0 2.89
HealthEquity Competitors 114 482 793 16 2.51

HealthEquity presently has a consensus target price of $57.00, suggesting a potential upside of 20.38%. As a group, “Medical Software & Technology Services” companies have a potential upside of 17.11%. Given HealthEquity’s stronger consensus rating and higher probable upside, research analysts clearly believe HealthEquity is more favorable than its competitors.

Profitability

This table compares HealthEquity and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HealthEquity 20.27% 13.93% 13.27%
HealthEquity Competitors -18.35% -12.16% -2.34%

Summary

HealthEquity beats its competitors on 11 of the 13 factors compared.

HealthEquity Company Profile

HealthEquity, Inc. provides a range of solutions for managing healthcare accounts (Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs)) for health plans, insurance companies and third-party administrators. The Company is engaged in technology-enabled services platforms that allow consumers to make healthcare saving and spending decisions. Its platform provides an ecosystem where consumers can access their tax-advantaged healthcare savings, compare treatment options and pricing, evaluate and pay healthcare bills, receive personalized benefit and clinical information, earn wellness incentives and make educated investment choices to help in their tax-advantaged healthcare savings. Its products and services include healthcare saving and spending platform, health savings accounts, investment advisory services, reimbursement arrangements and healthcare incentives. Its ecosystem primarily consists of HSA.

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