Financial Analysis: Zicix (OTCMKTS:ZICXD) & HealthEquity (NASDAQ:HQY)

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

Risk and Volatility

Zicix has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, HealthEquity has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zicix	N/A	N/A	N/A	($100.14)	-0.01
HealthEquity	$1.31 billion	5.64	$215.20 million	$2.67	33.21

HealthEquity has higher revenue and earnings than Zicix. Zicix is trading at a lower price-to-earnings ratio than HealthEquity, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

99.6% of HealthEquity shares are held by institutional investors. 1.6% of HealthEquity shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zicix	N/A	N/A	N/A
HealthEquity	17.25%	14.75%	9.22%

Analyst Recommendations

This is a breakdown of current recommendations for Zicix and HealthEquity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zicix	0	0	0	0	0.00
HealthEquity	1	1	11	1	2.86

HealthEquity has a consensus price target of $110.57, suggesting a potential upside of 24.70%. Given HealthEquity’s stronger consensus rating and higher possible upside, analysts clearly believe HealthEquity is more favorable than Zicix.

Summary

HealthEquity beats Zicix on 12 of the 13 factors compared between the two stocks.

About Zicix

Zicix Corporation, through its subsidiary, Texas Mobile Health, Inc., provides diagnostic medical imaging services in Houston, Texas. It offers cardiac diagnostic services, including echocardiogram, stress testing, carotid ultrasound, and halter and event monitoring services; medical services, such as general medical care, medical care for home health patients, general and immigration physicals, weight reduction, cold laser pain relief treatment, physical therapy, and anti-aging treatment; and MRI, CT, and X-Ray services. The company was formerly known as Bederra Corporation and changed its name to Zicix Corporation on February 8, 2011. Zicix Corporation was founded in 1979 and is based in Houston, Texas.

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.