XChange TEC.INC (NASDAQ:XHG – Get Free Report) and Goosehead Insurance (NASDAQ:GSHD – Get Free Report) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Profitability
This table compares XChange TEC.INC and Goosehead Insurance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| XChange TEC.INC | N/A | N/A | N/A |
| Goosehead Insurance | 6.77% | 284.41% | 5.53% |
Valuation and Earnings
This table compares XChange TEC.INC and Goosehead Insurance”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| XChange TEC.INC | $288.37 million | 0.00 | -$32.32 million | N/A | N/A |
| Goosehead Insurance | $314.51 million | 12.92 | $14.14 million | $1.15 | 94.76 |
Risk and Volatility
XChange TEC.INC has a beta of -0.67, meaning that its stock price is 167% less volatile than the S&P 500. Comparatively, Goosehead Insurance has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for XChange TEC.INC and Goosehead Insurance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| XChange TEC.INC | 0 | 0 | 0 | 0 | 0.00 |
| Goosehead Insurance | 1 | 4 | 5 | 0 | 2.40 |
Goosehead Insurance has a consensus target price of $110.10, suggesting a potential upside of 1.04%. Given Goosehead Insurance’s stronger consensus rating and higher probable upside, analysts plainly believe Goosehead Insurance is more favorable than XChange TEC.INC.
Summary
Goosehead Insurance beats XChange TEC.INC on 10 of the 10 factors compared between the two stocks.
About XChange TEC.INC
XChange TEC.INC engages in the professional insurance agency business in the People’s Republic of China. The company provides a various insurance products underwritten by insurance companies, including state-owned property and casualty insurance companies, as well as various regional property and casualty insurance companies. It also offers automobile, life, health, group accident, and other property related insurances primarily to individual end consumers. In addition, the company operates a SaaS platform to offer comprehensive services to online customers. It sells insurance primarily through a network of external referral sources that include external registered sales representatives and strategic channel partners, as well as through the in-house sales force. The company was formerly known as FLJ Group Limited and changed its name to XChange TEC.INC in May 2024. XChange TEC.INC was founded in 2012 and is based in Shanghai, the People’s Republic of China.
About Goosehead Insurance
Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC that engages in the provision of personal lines insurance agency services in the United States. The company offers homeowner’s, automotive, dwelling property, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services. As of December 31, 2023, it operated 1,415 franchise locations. The company was founded in 2003 and is headquartered in Westlake, Texas.
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