HealthEquity (NASDAQ: HQY) is one of 18 public companies in the “Medical Software & Technology Services” industry, but how does it weigh in compared to its rivals? We will compare HealthEquity to related businesses based on the strength of its risk, earnings, dividends, institutional ownership, analyst recommendations, profitability and valuation.

Volatility and Risk

HealthEquity has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, HealthEquity’s rivals have a beta of 1.33, suggesting that their average stock price is 33% more volatile than the S&P 500.

Earnings and Valuation

This table compares HealthEquity and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
HealthEquity $189.78 million $57.61 million 68.31
HealthEquity Competitors $376.15 million $34.64 million 9.21

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

Profitability

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

Net Margins Return on Equity Return on Assets
HealthEquity 20.27% 13.93% 13.27%
HealthEquity Competitors -18.37% -12.09% -2.31%

Analyst Ratings

This is a breakdown of current ratings for HealthEquity and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HealthEquity 0 0 8 0 3.00
HealthEquity Competitors 114 479 788 16 2.51

HealthEquity currently has a consensus target price of $57.00, indicating a potential upside of 24.54%. As a group, “Medical Software & Technology Services” companies have a potential upside of 16.69%. Given HealthEquity’s stronger consensus rating and higher probable upside, equities research analysts plainly believe HealthEquity is more favorable than its rivals.

Institutional & Insider Ownership

91.0% of HealthEquity shares are held by institutional investors. Comparatively, 63.1% of shares of all “Medical Software & Technology Services” companies are held by institutional investors. 19.0% of HealthEquity shares are held by insiders. Comparatively, 21.9% of shares of all “Medical Software & Technology Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

HealthEquity beats its rivals on 10 of the 13 factors compared.

About HealthEquity

HealthEquity, Inc. provides a range of solutions for managing healthcare accounts (Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs)) for health plans, insurance companies and third-party administrators. The Company is engaged in technology-enabled services platforms that allow consumers to make healthcare saving and spending decisions. Its platform provides an ecosystem where consumers can access their tax-advantaged healthcare savings, compare treatment options and pricing, evaluate and pay healthcare bills, receive personalized benefit and clinical information, earn wellness incentives and make educated investment choices to help in their tax-advantaged healthcare savings. Its products and services include healthcare saving and spending platform, health savings accounts, investment advisory services, reimbursement arrangements and healthcare incentives. Its ecosystem primarily consists of HSA.

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