Critical Contrast: Waterdrop (NYSE:WDH) & Oscar Health (NYSE:OSCR)

Waterdrop (NYSE:WDH) and Oscar Health (NYSE:OSCR) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Valuation & Earnings

This table compares Waterdrop and Oscar Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waterdrop	$568.81 million	0.89	$81.36 million	$0.21	6.69
Oscar Health	$11.70 billion	0.71	-$443.15 million	($0.59)	-46.39

Waterdrop has higher earnings, but lower revenue than Oscar Health. Oscar Health is trading at a lower price-to-earnings ratio than Waterdrop, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

2.0% of Waterdrop shares are owned by institutional investors. Comparatively, 75.7% of Oscar Health shares are owned by institutional investors. 24.6% of Waterdrop shares are owned by insiders. Comparatively, 25.1% of Oscar Health shares are owned by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Waterdrop	14.28%	11.34%	8.53%
Oscar Health	-0.30%	-3.26%	-0.57%

Risk & Volatility

Waterdrop has a beta of -0.18, suggesting that its stock price is 118% less volatile than the S&P 500. Comparatively, Oscar Health has a beta of 2.37, suggesting that its stock price is 137% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Waterdrop and Oscar Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waterdrop	0	2	0	0	2.00
Oscar Health	1	8	2	1	2.25

Waterdrop presently has a consensus target price of $2.00, suggesting a potential upside of 42.35%. Oscar Health has a consensus target price of $20.22, suggesting a potential downside of 26.12%. Given Waterdrop’s higher possible upside, analysts plainly believe Waterdrop is more favorable than Oscar Health.

Summary

Waterdrop beats Oscar Health on 8 of the 15 factors compared between the two stocks.

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.

About Oscar Health

Oscar Health, Inc. operates as a health insurance in the United States. The company offers health plans in individual and small group markets, as well as +Oscar, a technology driven platform that help providers and payors directly enable their shift to value-based care. It also provides reinsurance products. The company was formerly known as Mulberry Health Inc. and changed its name to Oscar Health, Inc. in January 2021. Oscar Health, Inc. was incorporated in 2012 and is headquartered in New York, New York.