SelectQuote (NYSE:SLQT – Get Free Report) and James River Group (NASDAQ:JRVR – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.
Risk & Volatility
SelectQuote has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, James River Group has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500.
Valuation & Earnings
This table compares SelectQuote and James River Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SelectQuote | $1.53 billion | 0.16 | $47.58 million | $0.05 | 27.50 |
| James River Group | $646.58 million | 0.45 | -$81.12 million | ($2.08) | -3.07 |
SelectQuote has higher revenue and earnings than James River Group. James River Group is trading at a lower price-to-earnings ratio than SelectQuote, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
34.6% of SelectQuote shares are owned by institutional investors. Comparatively, 95.2% of James River Group shares are owned by institutional investors. 13.1% of SelectQuote shares are owned by insiders. Comparatively, 33.8% of James River Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares SelectQuote and James River Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SelectQuote | 3.95% | 10.41% | 2.76% |
| James River Group | -7.64% | 7.11% | 0.69% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for SelectQuote and James River Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SelectQuote | 1 | 3 | 0 | 1 | 2.20 |
| James River Group | 1 | 4 | 1 | 1 | 2.29 |
SelectQuote currently has a consensus price target of $3.88, suggesting a potential upside of 181.82%. James River Group has a consensus price target of $6.40, suggesting a potential upside of 0.16%. Given SelectQuote’s higher probable upside, equities analysts clearly believe SelectQuote is more favorable than James River Group.
Summary
SelectQuote beats James River Group on 9 of the 14 factors compared between the two stocks.
About SelectQuote
SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies. The company also provides SelectRx, an accredited patient-centered pharmacy home pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, medication therapy management, and long-term pharmacy care; and population health that helps members understand the benefits available under their health plans, and contracts with insurance carriers. SelectQuote, Inc. was incorporated in 1999 and is headquartered in Overland Park, Kansas.
About James River Group
James River Group Holdings, Ltd., through its subsidiaries, provides specialty insurance services. It operates through Excess and Surplus Lines, and Specialty Admitted Insurance segments. The Excess and Surplus Lines segment underwrites liability and property insurance in the United States Puerto Rice, and the United States Virgin Islands. This segment distributes its insurance policies primarily through wholesale insurance brokers. The Specialty Admitted Insurance segment provides insurance for fronting, program administrators, managing general agents, and independent retail agents. James River Group Holdings, Ltd. was founded in 2002 and is headquartered in Pembroke, Bermuda.
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