Connecture (NASDAQ: CNXR) is one of 50 public companies in the “Internet Services” industry, but how does it compare to its rivals? We will compare Connecture to related businesses based on the strength of its analyst recommendations, risk, profitability, earnings, valuation, dividends and institutional ownership.

Risk and Volatility

Connecture has a beta of 2.16, indicating that its stock price is 116% more volatile than the S&P 500. Comparatively, Connecture’s rivals have a beta of 1.35, indicating that their average stock price is 35% more volatile than the S&P 500.

Institutional and Insider Ownership

38.8% of Connecture shares are held by institutional investors. Comparatively, 74.3% of shares of all “Internet Services” companies are held by institutional investors. 58.1% of Connecture shares are held by insiders. Comparatively, 19.5% of shares of all “Internet Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Connecture -21.91% N/A -20.45%
Connecture Competitors -0.14% 26.79% 6.18%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Connecture and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Connecture 0 0 0 0 N/A
Connecture Competitors 445 1706 2651 106 2.49

As a group, “Internet Services” companies have a potential upside of 2.67%. Given Connecture’s rivals higher probable upside, analysts clearly believe Connecture has less favorable growth aspects than its rivals.

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Connecture $82.18 million -$8.20 million -0.66
Connecture Competitors $942.22 million $116.70 million 53.20

Connecture’s rivals have higher revenue and earnings than Connecture. Connecture 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.

Summary

Connecture rivals beat Connecture on 7 of the 9 factors compared.

Connecture Company Profile

Connecture, Inc. provides a Web-based consumer shopping, enrollment and retention platform for health insurance distribution. The Company caters its services to health insurance marketplace operators, such as health plans, brokers and exchange operators. It operates through four segments: Enterprise/Commercial, Enterprise/State, Medicare and Private Exchange. The Enterprise/Commercial segment offers insurance distribution solutions to health plans. The Enterprise/State segment offers the sales automation solutions to state Governments, which allow its customers to offer customized individual and small group exchanges. The Medicare segment offers Web-based Medicare plan comparison, prescription drug comparison and enrollment tools for health plans, pharmacy benefit managers, pharmacies, field marketing organizations and call centers. The Private Exchange segment offers defined-contribution benefit exchange solutions to benefit consultants, brokers, exchange operators and aggregators.

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