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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Connecture and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Connecture 0 0 0 0 N/A
Connecture Competitors 396 1535 2586 84 2.51

As a group, “Internet Services” companies have a potential upside of 2.72%. Given Connecture’s competitors higher possible upside, analysts clearly believe Connecture has less favorable growth aspects than its competitors.

Profitability

This table compares Connecture and its competitors’ 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%

Insider & Institutional Ownership

38.8% of Connecture shares are owned by institutional investors. Comparatively, 73.9% of shares of all “Internet Services” companies are owned by institutional investors. 58.1% of Connecture shares are owned by company insiders. Comparatively, 19.5% of shares of all “Internet Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

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

Valuation and Earnings

This table compares Connecture and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Connecture $82.18 million -$8.20 million -0.67
Connecture Competitors $942.22 million $116.70 million 55.47

Connecture’s competitors have higher revenue and earnings than Connecture. Connecture is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Connecture competitors 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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