HealthEquity (NASDAQ: HQY) is one of 18 public companies in the “Medical Software & Technology Services” industry, but how does it contrast to its competitors? We will compare HealthEquity to related companies based on the strength of its analyst recommendations, institutional ownership, risk, profitability, earnings, dividends and valuation.

Insider & Institutional Ownership

91.0% of HealthEquity shares are owned by institutional investors. Comparatively, 59.5% of shares of all “Medical Software & Technology Services” companies are owned by institutional investors. 19.0% of HealthEquity shares are owned by insiders. Comparatively, 24.0% of shares of all “Medical Software & Technology Services” companies are owned by 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.

Valuation and Earnings

This table compares HealthEquity and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
HealthEquity $202.47 million $61.84 million 76.63
HealthEquity Competitors $376.98 million $34.79 million 8.34

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for HealthEquity and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HealthEquity 0 1 8 0 2.89
HealthEquity Competitors 72 392 765 10 2.58

HealthEquity currently has a consensus price target of $57.00, suggesting a potential upside of 11.02%. As a group, “Medical Software & Technology Services” companies have a potential upside of 19.70%. Given HealthEquity’s competitors higher possible upside, analysts plainly believe HealthEquity has less favorable growth aspects than its competitors.

Volatility & Risk

HealthEquity has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500. Comparatively, HealthEquity’s competitors have a beta of 1.33, meaning that their average share price is 33% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
HealthEquity 20.27% 13.93% 13.27%
HealthEquity Competitors -18.12% -11.70% -2.05%

Summary

HealthEquity beats its competitors on 9 of the 13 factors compared.

About HealthEquity

HealthEquity, Inc. provides a range of solutions for managing healthcare accounts (Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs)) for health plans, insurance companies and third-party administrators. The Company is engaged in technology-enabled services platforms that allow consumers to make healthcare saving and spending decisions. Its platform provides an ecosystem where consumers can access their tax-advantaged healthcare savings, compare treatment options and pricing, evaluate and pay healthcare bills, receive personalized benefit and clinical information, earn wellness incentives and make educated investment choices to help in their tax-advantaged healthcare savings. Its products and services include healthcare saving and spending platform, health savings accounts, investment advisory services, reimbursement arrangements and healthcare incentives. Its ecosystem primarily consists of HSA.

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