Fidelis Insurance (NYSE:FIHL – Get Free Report) and Waterdrop (NYSE:WDH – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.
Profitability
This table compares Fidelis Insurance and Waterdrop’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fidelis Insurance | 9.02% | 8.62% | 1.62% |
| Waterdrop | 12.47% | 10.87% | 7.94% |
Risk & Volatility
Fidelis Insurance has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Waterdrop has a beta of -0.18, suggesting that its stock price is 118% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fidelis Insurance | 2 | 3 | 3 | 0 | 2.13 |
| Waterdrop | 0 | 2 | 0 | 0 | 2.00 |
Fidelis Insurance presently has a consensus target price of $21.92, suggesting a potential downside of 4.46%. Waterdrop has a consensus target price of $2.00, suggesting a potential upside of 67.36%. Given Waterdrop’s higher probable upside, analysts clearly believe Waterdrop is more favorable than Fidelis Insurance.
Dividends
Fidelis Insurance pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. Waterdrop pays an annual dividend of $0.05 per share and has a dividend yield of 4.2%. Fidelis Insurance pays out 27.1% of its earnings in the form of a dividend. Waterdrop pays out 23.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Waterdrop is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
82.0% of Fidelis Insurance shares are held by institutional investors. Comparatively, 2.0% of Waterdrop shares are held by institutional investors. 24.6% of Waterdrop shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Fidelis Insurance and Waterdrop”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fidelis Insurance | $2.17 billion | 1.02 | $225.50 million | $2.21 | 10.38 |
| Waterdrop | $568.81 million | 0.76 | $81.36 million | $0.21 | 5.69 |
Fidelis Insurance has higher revenue and earnings than Waterdrop. Waterdrop is trading at a lower price-to-earnings ratio than Fidelis Insurance, indicating that it is currently the more affordable of the two stocks.
Summary
Fidelis Insurance beats Waterdrop on 9 of the 16 factors compared between the two stocks.
About Fidelis Insurance
Fidelis Insurance Holdings Limited, a specialty insurer, provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, as well as other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.
About Waterdrop
Waterdrop Inc., through its subsidiaries, provides online insurance brokerage services to match and connect users with related insurance products underwritten by insurance companies in the People's Republic of China. The company offers short-term health and long-term health and life insurance products and services. It also operates a medical crowdfunding platform. Waterdrop Inc. was founded in 2016 and is headquartered in Beijing, the People's Republic of China.
Receive News & Ratings for Fidelis Insurance Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fidelis Insurance and related companies with MarketBeat.com's FREE daily email newsletter.
