Critical Analysis: Crawford & Company (NYSE:CRD.A) vs. SelectQuote (NYSE:SLQT)

SelectQuote (NYSE:SLQT) and Crawford & Company (NYSE:CRD.A) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Risk and Volatility

SelectQuote has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500. Comparatively, Crawford & Company has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for SelectQuote and Crawford & Company, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SelectQuote	1	2	0	1	2.25
Crawford & Company	0	0	1	0	3.00

SelectQuote currently has a consensus price target of $3.00, indicating a potential upside of 586.50%. Crawford & Company has a consensus price target of $14.00, indicating a potential upside of 14.94%. Given SelectQuote’s higher possible upside, equities analysts plainly believe SelectQuote is more favorable than Crawford & Company.

Institutional & Insider Ownership

34.6% of SelectQuote shares are owned by institutional investors. Comparatively, 22.6% of Crawford & Company shares are owned by institutional investors. 11.6% of SelectQuote shares are owned by insiders. Comparatively, 54.3% of Crawford & Company shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares SelectQuote and Crawford & Company’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SelectQuote	4.61%	22.48%	6.06%
Crawford & Company	2.01%	29.17%	6.80%

Valuation & Earnings

This table compares SelectQuote and Crawford & Company”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SelectQuote	$1.62 billion	0.05	$62.19 million	($0.03)	-14.57
Crawford & Company	$1.31 billion	0.44	$19.63 million	$0.53	22.98

SelectQuote has higher revenue and earnings than Crawford & Company. SelectQuote is trading at a lower price-to-earnings ratio than Crawford & Company, indicating that it is currently the more affordable of the two stocks.

Summary

Crawford & Company beats SelectQuote on 8 of the 15 factors compared between the two stocks.

About SelectQuote

SelectQuote, Inc. (NYSE: SLQT) operates a technology-enabled insurance distribution platform that helps consumers compare and purchase insurance products from third-party carriers. The company combines digital tools, proprietary data and licensed agents to connect customers with coverage suited to their needs. SelectQuote’s primary business is its Senior segment, which provides access to Medicare Advantage, Medicare Supplement and prescription drug plans. The company has also historically offered life insurance, as well as auto and home insurance, through its Life and Auto & Home businesses.

About Crawford & Company

Crawford & Company is a provider of claims management and related services for insurers, businesses, and other organizations. Its work includes investigating and adjusting property and casualty claims, administering workers’ compensation and liability claims, and supporting clients with medical management and other claims-related services. The company also provides catastrophe response and specialized loss-adjusting services, as well as managed repair solutions that connect claimants with contractors.