Contrasting HealthEquity (HQY) and The Competition

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

Earnings and Valuation

This table compares HealthEquity and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
HealthEquity $202.47 million $61.84 million 77.48
HealthEquity Competitors $376.98 million $34.79 million 8.34

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

Risk and Volatility

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

Institutional & Insider Ownership

91.0% of HealthEquity shares are owned by institutional investors. Comparatively, 63.1% of shares of all “Medical Software & Technology Services” companies are owned by institutional investors. 29.0% of HealthEquity shares are owned by insiders. Comparatively, 24.4% of shares of all “Medical Software & Technology Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for HealthEquity and its rivals, 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 70 391 763 10 2.58

HealthEquity currently has a consensus price target of $57.00, indicating a potential upside of 9.81%. As a group, “Medical Software & Technology Services” companies have a potential upside of 18.24%. Given HealthEquity’s rivals higher probable upside, analysts plainly believe HealthEquity has less favorable growth aspects than its rivals.

Profitability

This table compares HealthEquity and its rivals’ 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 rivals on 10 of the 13 factors compared.

HealthEquity Company Profile

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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