Analyzing Waterdrop (WDH) and Its Competitors

Waterdrop (NYSE:WDH) is one of 311 public companies in the “Insurance” industry, but how does it weigh in compared to its rivals? We will compare Waterdrop to similar businesses based on the strength of its earnings, dividends, analyst recommendations, institutional ownership, risk, profitability and valuation.

Volatility & Risk

Waterdrop has a beta of -0.17, meaning that its stock price is 117% less volatile than the S&P 500. Comparatively, Waterdrop’s rivals have a beta of -1.59, meaning that their average stock price is 259% less volatile than the S&P 500.

Profitability

This table compares Waterdrop and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waterdrop	10.69%	10.47%	7.40%
Waterdrop Competitors	9.09%	-9.90%	4.08%

Insider & Institutional Ownership

2.0% of Waterdrop shares are owned by institutional investors. Comparatively, 55.9% of shares of all “Insurance” companies are owned by institutional investors. 24.6% of Waterdrop shares are owned by insiders. Comparatively, 13.6% of shares of all “Insurance” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Waterdrop and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Waterdrop	$568.81 million	$81.36 million	4.79
Waterdrop Competitors	$15.63 billion	$1.70 billion	35.24

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

Dividends

Waterdrop pays an annual dividend of $0.05 per share and has a dividend yield of 5.0%. Waterdrop pays out 23.8% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 2.8% and pay out 30.5% of their earnings in the form of a dividend. Waterdrop is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Waterdrop and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waterdrop	1	0	0	0	1.00
Waterdrop Competitors	3324	15644	16490	738	2.40

As a group, “Insurance” companies have a potential upside of 2.63%. Given Waterdrop’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Waterdrop has less favorable growth aspects than its rivals.

Summary

Waterdrop rivals beat Waterdrop on 8 of the 15 factors compared.

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.