Connecture (OTCMKTS: CNXR) is one of 45 public companies in the “Internet Services” industry, but how does it contrast to its peers? We will compare Connecture to similar businesses based on the strength of its institutional ownership, risk, profitability, earnings, valuation, dividends and analyst recommendations.

Risk and Volatility

Connecture has a beta of 1.94, indicating that its stock price is 94% more volatile than the S&P 500. Comparatively, Connecture’s peers have a beta of 1.41, indicating that their average stock price is 41% more volatile than the S&P 500.

Institutional & Insider Ownership

38.8% of Connecture shares are owned by institutional investors. Comparatively, 66.1% of shares of all “Internet Services” companies are owned by institutional investors. 68.6% of Connecture shares are owned by company insiders. Comparatively, 21.1% of shares of all “Internet Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Connecture and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Connecture 0 0 0 0 N/A
Connecture Competitors 420 1579 2673 91 2.51

As a group, “Internet Services” companies have a potential downside of 0.03%. Given Connecture’s peers higher possible upside, analysts clearly believe Connecture has less favorable growth aspects than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Connecture -19.38% N/A -17.70%
Connecture Competitors 1.43% 38.95% 7.76%

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Connecture $81.89 million -$26.53 million -0.21
Connecture Competitors $954.98 million $110.67 million 672.84

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

Summary

Connecture peers 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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