Critical Review: eHealth (NASDAQ:EHTH) vs. Detwiler Fenton Group (OTCMKTS:DMCD)

eHealth (NASDAQ:EHTH) and Detwiler Fenton Group (OTCMKTS:DMCD) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.

Valuation and Earnings

This table compares eHealth and Detwiler Fenton Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eHealth	$552.57 million	0.22	$10.06 million	($0.98)	-4.07
Detwiler Fenton Group	N/A	N/A	N/A	N/A	N/A

eHealth has higher revenue and earnings than Detwiler Fenton Group.

Analyst Recommendations

This is a breakdown of current ratings for eHealth and Detwiler Fenton Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eHealth	0	3	1	0	2.25
Detwiler Fenton Group	0	0	0	0	0.00

eHealth presently has a consensus target price of $6.75, indicating a potential upside of 69.17%. Given eHealth’s stronger consensus rating and higher possible upside, equities research analysts plainly believe eHealth is more favorable than Detwiler Fenton Group.

Insider and Institutional Ownership

79.5% of eHealth shares are owned by institutional investors. 5.2% of eHealth shares are owned by insiders. Comparatively, 40.5% of Detwiler Fenton Group shares are owned by 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.

Profitability

This table compares eHealth and Detwiler Fenton Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
eHealth	4.14%	2.16%	1.11%
Detwiler Fenton Group	N/A	N/A	N/A

Summary

eHealth beats Detwiler Fenton Group on 8 of the 9 factors compared between the two stocks.

About eHealth

eHealth, Inc. operates a health insurance marketplace that provides consumer engagement, education, and health insurance enrollment solutions in the United States. The company operates in two segments, Medicare; and Employer and Individual. The Medicare segment offers sale of Medicare-related health insurance plans, which includes Medicare advantage, Medicare Supplement, and Medicare Part D prescription drug plans to Medicare-eligible customers including but not limited to, dental, and vision insurance, as well as advertising program for marketing and other services. The Employer and Individual segment engages in the sale of individual, family, and small business health insurance plans; and ancillary products to non-Medicare-eligible customers including but not limited to, dental, vision, and short and long term disability insurance. In addition, the company provides ecommerce platforms and consumer engagement solutions, which includes market leading information, decision support, customer engagement, and transactional services to group of health insurance consumers; and organize and present the insurance information in objective format to individuals, families, and small businesses to research, analyze, compare and purchase health insurance plans. Further, it markets health insurance plans through its websites, including eHealth.com, eHealthInsurance.com, eHealthMedicare.com, Medicare.com, PlanPrescriber.com, and GoMedigap.com. The company also offers online sponsorship and advertising, non-broker of record, lead referral, technology licensing, as well as performs various post-enrollment services for members in Medicare health insurance plans. eHealth, Inc. was incorporated in 1997 and is headquartered in Austin, Texas.

About Detwiler Fenton Group

Detwiler Fenton Group, Inc., through its subsidiaries, provides financial services to institutional and individual investors primarily in the United States. The company offers institutional channel research and wealth management/investment brokerage services to high net worth and other individuals. It also markets annuities and life insurance, health insurance, and long term care products, as well as mutual funds. The company, formerly known as Detwiler, Mitchell & Co., was founded in 1983 and is based in Boston, Massachusetts.