GoHealth (NASDAQ:GOCO – Get Free Report) and XChange TEC.INC (NASDAQ:XHG – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Profitability
This table compares GoHealth and XChange TEC.INC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GoHealth | -4.32% | -17.17% | -4.58% |
| XChange TEC.INC | N/A | N/A | N/A |
Insider & Institutional Ownership
24.2% of GoHealth shares are owned by institutional investors. 35.0% of GoHealth shares are owned by company insiders. Comparatively, 0.6% of XChange TEC.INC shares are owned by company 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.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GoHealth | $734.67 million | 0.56 | -$63.26 million | ($3.50) | -5.17 |
| XChange TEC.INC | $288.37 million | 0.00 | -$32.32 million | N/A | N/A |
XChange TEC.INC has lower revenue, but higher earnings than GoHealth.
Risk & Volatility
GoHealth has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, XChange TEC.INC has a beta of -0.76, meaning that its share price is 176% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and price targets for GoHealth and XChange TEC.INC, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GoHealth | 0 | 1 | 0 | 0 | 2.00 |
| XChange TEC.INC | 0 | 0 | 0 | 0 | 0.00 |
GoHealth presently has a consensus target price of $13.00, suggesting a potential downside of 28.22%. Given GoHealth’s stronger consensus rating and higher probable upside, research analysts plainly believe GoHealth is more favorable than XChange TEC.INC.
Summary
GoHealth beats XChange TEC.INC on 7 of the 11 factors compared between the two stocks.
About GoHealth
GoHealth, Inc. operates as a health insurance marketplace and Medicare-focused digital health company in the United States. The company operates a technology platform that leverages machine-learning algorithms of insurance behavioral data to optimize the process for helping individuals find the health insurance plan for their specific needs. It provides Medicare plans, including Medicare Advantage, Medicare Supplement and Prescription Drug, and Medicare Special Needs Plans. The company also offers partner marketing services. It sells its products through carriers and online platform, as well as independent and external agencies. The company was founded in 2001 and is headquartered in Chicago, Illinois.
About XChange TEC.INC
XChange TEC.INC engages in the professional insurance agency business in the People’s Republic of China. The company provides a various insurance products underwritten by insurance companies, including state-owned property and casualty insurance companies, as well as various regional property and casualty insurance companies. It also offers automobile, life, health, group accident, and other property related insurances primarily to individual end consumers. In addition, the company operates a SaaS platform to offer comprehensive services to online customers. It sells insurance primarily through a network of external referral sources that include external registered sales representatives and strategic channel partners, as well as through the in-house sales force. The company was formerly known as FLJ Group Limited and changed its name to XChange TEC.INC in May 2024. XChange TEC.INC was founded in 2012 and is based in Shanghai, the People’s Republic of China.
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