Reviewing Fidelis Insurance (NYSE:FIHL) and Waterdrop (NYSE:WDH)

Waterdrop (NYSE:WDH) and Fidelis Insurance (NYSE:FIHL) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Profitability

This table compares Waterdrop and Fidelis Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waterdrop	12.47%	11.02%	8.30%
Fidelis Insurance	9.02%	8.62%	1.62%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Waterdrop and Fidelis Insurance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waterdrop	0	2	0	0	2.00
Fidelis Insurance	2	3	3	0	2.13

Waterdrop currently has a consensus target price of $2.00, indicating a potential upside of 54.44%. Fidelis Insurance has a consensus target price of $21.92, indicating a potential downside of 7.21%. Given Waterdrop’s higher possible upside, analysts clearly believe Waterdrop is more favorable than Fidelis Insurance.

Insider and Institutional Ownership

2.0% of Waterdrop shares are owned by institutional investors. Comparatively, 82.0% of Fidelis Insurance shares are owned by institutional investors. 24.6% of Waterdrop shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Waterdrop and Fidelis Insurance”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waterdrop	$568.81 million	0.82	$81.36 million	$0.21	6.17
Fidelis Insurance	$2.17 billion	1.05	$225.50 million	$2.21	10.69

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.

Risk and Volatility

Waterdrop has a beta of -0.18, indicating that its stock price is 118% less volatile than the S&P 500. Comparatively, Fidelis Insurance has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Dividends

Waterdrop pays an annual dividend of $0.05 per share and has a dividend yield of 3.9%. Fidelis Insurance pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. Waterdrop pays out 23.8% of its earnings in the form of a dividend. Fidelis Insurance pays out 27.1% 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.

Summary

Fidelis Insurance beats Waterdrop on 9 of the 16 factors compared between the two stocks.

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.

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.