Reviewing AIX (NASDAQ:AIFU) and eHealth (NASDAQ:EHTH)

eHealth (NASDAQ:EHTH) and AIX (NASDAQ:AIFU) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares eHealth and AIX”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eHealth	$552.57 million	0.26	-$28.21 million	($0.98)	-4.82
AIX	$1.81 billion	0.01	$39.50 million	$0.73	0.24

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

Profitability

This table compares eHealth and AIX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
eHealth	-7.58%	-5.70%	-3.00%
AIX	N/A	N/A	N/A

Institutional & Insider Ownership

79.5% of eHealth shares are owned by institutional investors. Comparatively, 26.7% of AIX shares are owned by institutional investors. 4.1% of eHealth shares are owned by insiders. Comparatively, 25.6% of AIX 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.

Risk & Volatility

eHealth has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, AIX has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for eHealth and AIX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eHealth	0	3	1	0	2.25
AIX	0	0	0	0	0.00

eHealth currently has a consensus price target of $6.75, indicating a potential upside of 43.01%. Given eHealth’s stronger consensus rating and higher probable upside, analysts plainly believe eHealth is more favorable than AIX.

Summary

AIX beats eHealth on 8 of the 14 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 AIX

AIX, Inc. engages in the provision of agency services and insurance claims adjusting services. It operates through the Insurance Agency and Claims Adjusting segments. The Insurance Agency segment includes providing agency services for insurance products and life insurance products. The Claims Adjusting segment provides pre-underwriting survey services, claims adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The company was founded by Yin An Hu and Qiu Ping Lai in 1998 and is headquartered in Guangzhou, China.