Comparing Waterdrop (NYSE:WDH) & Acmat (OTCMKTS:ACMTA)

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

Institutional and Insider Ownership

2.0% of Waterdrop shares are owned by institutional investors. 10.8% of Acmat shares are owned by company insiders. Comparatively, 24.6% of Waterdrop 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acmat	N/A	N/A	N/A	N/A	N/A
Waterdrop	$3.25 billion	0.20	$50.35 million	$0.19	9.34

Waterdrop has higher revenue and earnings than Acmat.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Acmat	N/A	N/A	N/A
Waterdrop	15.58%	9.99%	7.57%

Analyst Ratings

This is a summary of current recommendations and price targets for Acmat and Waterdrop, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acmat	0	0	0	0	0.00
Waterdrop	0	2	0	0	2.00

Waterdrop has a consensus price target of $2.00, indicating a potential upside of 12.68%. Given Waterdrop’s stronger consensus rating and higher probable upside, analysts plainly believe Waterdrop is more favorable than Acmat.

Summary

Waterdrop beats Acmat on 8 of the 8 factors compared between the two stocks.

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.

About Waterdrop

Waterdrop Inc., through its subsidiaries, provides online insurance brokerage services to match and connect users with related insurance products underwritten by insurance companies in the People's Republic of China. The company offers short-term health and long-term health and life insurance products and services. It also operates a medical crowdfunding platform. Waterdrop Inc. was founded in 2016 and is headquartered in Beijing, the People's Republic of China.