Reviewing SelectQuote (NYSE:SLQT) and Acmat (OTCMKTS:ACMTA)

SelectQuote (NYSE:SLQT) and Acmat (OTCMKTS:ACMTA) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Volatility & Risk

SelectQuote has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, Acmat has a beta of -0.04, suggesting that its stock price is 104% less volatile than the S&P 500.

Earnings & Valuation

This table compares SelectQuote and Acmat”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SelectQuote	$1.53 billion	0.10	$47.58 million	$0.09	9.48
Acmat	N/A	N/A	N/A	N/A	N/A

SelectQuote has higher revenue and earnings than Acmat.

Institutional and Insider Ownership

34.6% of SelectQuote shares are owned by institutional investors. 13.1% of SelectQuote shares are owned by company insiders. Comparatively, 10.8% of Acmat shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares SelectQuote and Acmat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SelectQuote	5.60%	20.49%	5.58%
Acmat	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for SelectQuote and Acmat, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SelectQuote	1	1	0	2	2.75
Acmat	0	0	0	0	0.00

SelectQuote currently has a consensus target price of $3.00, indicating a potential upside of 251.70%. Given SelectQuote’s stronger consensus rating and higher probable upside, research analysts clearly believe SelectQuote is more favorable than Acmat.

Summary

SelectQuote beats Acmat on 10 of the 10 factors compared between the two stocks.

About SelectQuote

SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies. The company also provides SelectRx, an accredited patient-centered pharmacy home pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, medication therapy management, and long-term pharmacy care; and population health that helps members understand the benefits available under their health plans, and contracts with insurance carriers. SelectQuote, Inc. was incorporated in 1999 and is headquartered in Overland Park, Kansas.

About Acmat

ACMAT Corporation, through its subsidiaries, provides surety bonds primarily for construction contractors in the United States. The company offers surety bonds for prime, sub-prime, specialty trade, environmental, asbestos, and lead abatement contractors, as well as for miscellaneous obligations. It also provides miscellaneous surety comprising workers’ compensation, supply, subdivision, and license and permit bonds. The company was founded in 1950 and is based in Farmington, Connecticut.