Head to Head Contrast: Atlantic American (NASDAQ:AAME) vs. eHealth (NASDAQ:EHTH)

eHealth (NASDAQ:EHTH) and Atlantic American (NASDAQ:AAME) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Valuation & Earnings

This table compares eHealth and Atlantic American”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eHealth	$554.01 million	0.03	$40.04 million	($1.27)	-0.37
Atlantic American	$210.44 million	0.11	$6.02 million	$0.26	4.27

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for eHealth and Atlantic American, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eHealth	1	5	0	0	1.83
Atlantic American	1	0	0	0	1.00

eHealth currently has a consensus target price of $2.19, indicating a potential upside of 361.50%. Given eHealth’s stronger consensus rating and higher probable upside, equities research analysts clearly believe eHealth is more favorable than Atlantic American.

Institutional & Insider Ownership

79.5% of eHealth shares are owned by institutional investors. Comparatively, 5.5% of Atlantic American shares are owned by institutional investors. 7.2% of eHealth shares are owned by company insiders. Comparatively, 80.1% of Atlantic American shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares eHealth and Atlantic American’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
eHealth	5.42%	6.13%	2.92%
Atlantic American	N/A	N/A	N/A

Risk and Volatility

eHealth has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500. Comparatively, Atlantic American has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Summary

eHealth beats Atlantic American on 9 of the 13 factors compared between the two stocks.

About eHealth

eHealth, Inc. operates a health insurance marketplace that provides consumer engagement, education, and health insurance enrollment solutions in the United States. The company operates in two segments, Medicare; and Employer and Individual. The Medicare segment offers sale of Medicare-related health insurance plans, which includes Medicare advantage, Medicare Supplement, and Medicare Part D prescription drug plans to Medicare-eligible customers including but not limited to, dental, and vision insurance, as well as advertising program for marketing and other services. The Employer and Individual segment engages in the sale of individual, family, and small business health insurance plans; and ancillary products to non-Medicare-eligible customers including but not limited to, dental, vision, and short and long term disability insurance. In addition, the company provides ecommerce platforms and consumer engagement solutions, which includes market leading information, decision support, customer engagement, and transactional services to group of health insurance consumers; and organize and present the insurance information in objective format to individuals, families, and small businesses to research, analyze, compare and purchase health insurance plans. Further, it markets health insurance plans through its websites, including eHealth.com, eHealthInsurance.com, eHealthMedicare.com, Medicare.com, PlanPrescriber.com, and GoMedigap.com. The company also offers online sponsorship and advertising, non-broker of record, lead referral, technology licensing, as well as performs various post-enrollment services for members in Medicare health insurance plans. eHealth, Inc. was incorporated in 1997 and is headquartered in Austin, Texas.

About Atlantic American

Atlantic American Corporation, through its subsidiaries, provides life and health, and property and casualty insurance products in the United States. It operates through American Southern and Bankers Fidelity segments. The company offers property and casualty insurance products, including commercial automobile insurance coverage for state governments, local municipalities, and other motor pools and fleets; general liability; and inland marine insurance products. It also provides surety bond coverage for subdivision construction; school bus contracts; and performance and payment bonds. In addition, the company offers individual and group whole life insurance products; Medicare supplement insurance products; and other accident and health insurance products comprising various individual and group policies for the payment of standard benefits for the treatment of diagnosed cancer and other critical illnesses, as well as various other products, such as short-term nursing facility care, accident only, hospital indemnity, and disability coverages. It markets its products through independent agents and brokers. The company was founded in 1937 and is based in Atlanta, Georgia. Atlantic American Corporation is a subsidiary of Atlantic American / Delta Group.