HealthEquity (NASDAQ:HQY) and CochLear (OTCMKTS:CHEOY) Head-To-Head Survey

HealthEquity (NASDAQ:HQY) and CochLear (OTCMKTS:CHEOY) are both mid-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Risk and Volatility

HealthEquity has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500. Comparatively, CochLear has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Insider and Institutional Ownership

99.6% of HealthEquity shares are owned by institutional investors. 1.5% of HealthEquity shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares HealthEquity and CochLear’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HealthEquity	16.39%	13.86%	8.67%
CochLear	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations for HealthEquity and CochLear, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HealthEquity	1	1	12	1	2.87
CochLear	0	3	1	1	2.60

HealthEquity currently has a consensus price target of $111.79, indicating a potential upside of 36.04%. Given HealthEquity’s stronger consensus rating and higher probable upside, analysts clearly believe HealthEquity is more favorable than CochLear.

Valuation & Earnings

This table compares HealthEquity and CochLear”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HealthEquity	$1.31 billion	5.24	$215.20 million	$2.46	33.40
CochLear	$1.53 billion	2.95	$251.85 million	N/A	N/A

CochLear has higher revenue and earnings than HealthEquity.

Summary

HealthEquity beats CochLear on 9 of the 12 factors compared between the two stocks.

About HealthEquity

HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, receive personalized benefit information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides investment platform; and online-only automated investment advisory services through Advisor, a Web-based tool. In addition, the company offers flexible spending accounts; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs. It serves clients through a direct sales force; benefits brokers and advisors; and a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. HealthEquity, Inc. was incorporated in 2002 and is based in Draper, Utah.

About CochLear

Cochlear Limited provides implantable hearing solutions for children and adults worldwide. It offers cochlear implant systems, sound processor upgrades, bone conduction systems, accessories, and other products. Cochlear Limited was founded in 1981 and is headquartered in Sydney, Australia.