EverQuote (NASDAQ:EVER) & SelectQuote (NYSE:SLQT) Head to Head Survey

SelectQuote (NYSE:SLQT) and EverQuote (NASDAQ:EVER) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Analyst Recommendations

This is a summary of current ratings and recommmendations for SelectQuote and EverQuote, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SelectQuote	1	3	0	1	2.20
EverQuote	0	1	3	1	3.00

SelectQuote presently has a consensus target price of $3.88, suggesting a potential upside of 185.98%. EverQuote has a consensus target price of $34.00, suggesting a potential upside of 26.82%. Given SelectQuote’s higher probable upside, equities analysts clearly believe SelectQuote is more favorable than EverQuote.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SelectQuote	3.95%	10.41%	2.76%
EverQuote	8.36%	38.19%	25.60%

Volatility & Risk

SelectQuote has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, EverQuote has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Institutional & Insider Ownership

34.6% of SelectQuote shares are held by institutional investors. Comparatively, 91.5% of EverQuote shares are held by institutional investors. 13.1% of SelectQuote shares are held by company insiders. Comparatively, 25.5% of EverQuote shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares SelectQuote and EverQuote”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SelectQuote	$1.53 billion	0.16	$47.58 million	$0.05	27.10
EverQuote	$500.19 million	1.93	$32.17 million	$1.43	18.75

SelectQuote has higher revenue and earnings than EverQuote. EverQuote is trading at a lower price-to-earnings ratio than SelectQuote, indicating that it is currently the more affordable of the two stocks.

Summary

EverQuote beats SelectQuote on 9 of the 14 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 EverQuote

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.