Connecture (OTCMKTS: CNXR) is one of 46 public companies in the “Internet Services” industry, but how does it contrast to its competitors? We will compare Connecture to similar companies based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Profitability

This table compares Connecture and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Connecture -19.38% N/A -17.70%
Connecture Competitors 2.33% 44.27% 8.93%

Earnings & Valuation

This table compares Connecture and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Connecture $81.89 million -$26.53 million -0.24
Connecture Competitors $991.07 million $116.17 million 647.49

Connecture’s competitors have higher revenue and earnings than Connecture. Connecture is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Connecture has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500. Comparatively, Connecture’s competitors have a beta of 1.12, meaning that their average stock price is 12% more volatile than the S&P 500.

Insider and Institutional Ownership

38.8% of Connecture shares are owned by institutional investors. Comparatively, 73.6% of shares of all “Internet Services” companies are owned by institutional investors. 68.6% of Connecture shares are owned by company insiders. Comparatively, 20.9% of shares of all “Internet Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Connecture and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Connecture 0 0 0 0 N/A
Connecture Competitors 413 1620 2731 91 2.51

As a group, “Internet Services” companies have a potential upside of 3.69%. Given Connecture’s competitors higher possible upside, analysts clearly believe Connecture has less favorable growth aspects than its competitors.

Summary

Connecture competitors beat Connecture on 7 of the 9 factors compared.

About Connecture

Connecture, Inc. provides a Web-based consumer shopping, enrollment and retention platform for health insurance distribution. The Company caters its services to health insurance marketplace operators, such as health plans, brokers and exchange operators. It operates through four segments: Enterprise/Commercial, Enterprise/State, Medicare and Private Exchange. The Enterprise/Commercial segment offers insurance distribution solutions to health plans. The Enterprise/State segment offers the sales automation solutions to state Governments, which allow its customers to offer customized individual and small group exchanges. The Medicare segment offers Web-based Medicare plan comparison, prescription drug comparison and enrollment tools for health plans, pharmacy benefit managers, pharmacies, field marketing organizations and call centers. The Private Exchange segment offers defined-contribution benefit exchange solutions to benefit consultants, brokers, exchange operators and aggregators.

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