EverQuote (NASDAQ:EVER – Get Free Report) and SelectQuote (NYSE:SLQT – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.
Analyst Ratings
This is a summary of recent recommendations and price targets for EverQuote and SelectQuote, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EverQuote | 0 | 1 | 3 | 1 | 3.00 |
| SelectQuote | 1 | 3 | 0 | 1 | 2.20 |
EverQuote currently has a consensus target price of $34.00, suggesting a potential upside of 33.70%. SelectQuote has a consensus target price of $3.88, suggesting a potential upside of 181.82%. Given SelectQuote’s higher probable upside, analysts plainly believe SelectQuote is more favorable than EverQuote.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| EverQuote | 8.36% | 38.19% | 25.60% |
| SelectQuote | 3.95% | 10.41% | 2.76% |
Risk and Volatility
EverQuote has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, SelectQuote has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.
Institutional & Insider Ownership
91.5% of EverQuote shares are held by institutional investors. Comparatively, 34.6% of SelectQuote shares are held by institutional investors. 25.5% of EverQuote shares are held by insiders. Comparatively, 13.1% of SelectQuote shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares EverQuote and SelectQuote”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EverQuote | $500.19 million | 1.83 | $32.17 million | $1.43 | 17.78 |
| SelectQuote | $1.53 billion | 0.16 | $47.58 million | $0.05 | 27.50 |
SelectQuote has higher revenue and earnings than EverQuote. EverQuote is trading at a lower price-to-earnings ratio than SelectQuote, indicating that it is currently the more affordable of the two stocks.
Summary
EverQuote beats SelectQuote on 9 of the 14 factors compared between the two stocks.
About EverQuote
EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.
About SelectQuote
SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies. The company also provides SelectRx, an accredited patient-centered pharmacy home pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, medication therapy management, and long-term pharmacy care; and population health that helps members understand the benefits available under their health plans, and contracts with insurance carriers. SelectQuote, Inc. was incorporated in 1999 and is headquartered in Overland Park, Kansas.
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