Critical Comparison: Oscar Health (NYSE:OSCR) and Waterdrop (NYSE:WDH)

Oscar Health (NYSE:OSCR) and Waterdrop (NYSE:WDH) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Oscar Health and Waterdrop, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oscar Health	1	8	2	1	2.25
Waterdrop	0	2	0	0	2.00

Oscar Health currently has a consensus price target of $20.22, indicating a potential downside of 17.77%. Waterdrop has a consensus price target of $2.00, indicating a potential upside of 41.34%. Given Waterdrop’s higher probable upside, analysts plainly believe Waterdrop is more favorable than Oscar Health.

Risk and Volatility

Oscar Health has a beta of 2.37, meaning that its stock price is 137% more volatile than the S&P 500. Comparatively, Waterdrop has a beta of -0.18, meaning that its stock price is 118% less volatile than the S&P 500.

Valuation and Earnings

This table compares Oscar Health and Waterdrop”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oscar Health	$11.70 billion	0.63	-$443.15 million	($0.59)	-41.68
Waterdrop	$568.81 million	0.90	$81.36 million	$0.21	6.74

Waterdrop has lower revenue, but higher earnings than Oscar Health. Oscar Health is trading at a lower price-to-earnings ratio than Waterdrop, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Oscar Health and Waterdrop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oscar Health	-0.30%	-3.26%	-0.57%
Waterdrop	14.28%	11.34%	8.53%

Institutional & Insider Ownership

75.7% of Oscar Health shares are owned by institutional investors. Comparatively, 2.0% of Waterdrop shares are owned by institutional investors. 24.4% of Oscar Health shares are owned by company insiders. Comparatively, 24.6% of Waterdrop shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Waterdrop beats Oscar Health on 9 of the 15 factors compared between the two stocks.

About Oscar Health

Oscar Health, Inc. operates as a health insurance in the United States. The company offers health plans in individual and small group markets, as well as +Oscar, a technology driven platform that help providers and payors directly enable their shift to value-based care. It also provides reinsurance products. The company was formerly known as Mulberry Health Inc. and changed its name to Oscar Health, Inc. in January 2021. Oscar Health, Inc. was incorporated in 2012 and is headquartered in New York, New York.

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.