Comparing eHealth (NASDAQ:EHTH) & Willis Towers Watson Public Limited (WLTW)

eHealth (NASDAQ: EHTH) and Willis Towers Watson Public Limited (NASDAQ:WLTW) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for eHealth and Willis Towers Watson Public Limited, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
eHealth 0 1 3 0 2.75
Willis Towers Watson Public Limited 2 1 10 0 2.62

eHealth presently has a consensus price target of $17.67, suggesting a potential upside of 0.78%. Willis Towers Watson Public Limited has a consensus price target of $152.82, suggesting a potential upside of 2.47%. Given Willis Towers Watson Public Limited’s higher possible upside, analysts clearly believe Willis Towers Watson Public Limited is more favorable than eHealth.

Insider & Institutional Ownership

93.6% of eHealth shares are owned by institutional investors. Comparatively, 92.1% of Willis Towers Watson Public Limited shares are owned by institutional investors. 6.2% of eHealth shares are owned by company insiders. Comparatively, 6.7% of Willis Towers Watson Public Limited shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares eHealth and Willis Towers Watson Public Limited’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
eHealth $182.74 million 1.77 -$4.31 million ($0.35) -50.08
Willis Towers Watson Public Limited $7.90 billion 2.54 $1.57 billion $2.76 54.04

Willis Towers Watson Public Limited has higher revenue and earnings than eHealth. eHealth is trading at a lower price-to-earnings ratio than Willis Towers Watson Public Limited, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

eHealth has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, Willis Towers Watson Public Limited has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Dividends

Willis Towers Watson Public Limited pays an annual dividend of $2.12 per share and has a dividend yield of 1.4%. eHealth does not pay a dividend. Willis Towers Watson Public Limited pays out 76.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares eHealth and Willis Towers Watson Public Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
eHealth -3.44% -5.64% -4.50%
Willis Towers Watson Public Limited 4.75% 10.63% 3.50%

Summary

Willis Towers Watson Public Limited beats eHealth on 11 of the 15 factors compared between the two stocks.

eHealth Company Profile

eHealth, Inc. provides a private online source of health insurance for individuals, families and small businesses. The Company is the parent company of eHealthInsurance, a private health insurance exchange where individuals, families and small businesses can compare health insurance products from various insurers side-by-side, and purchase and enroll in coverage online through its Websites (www.eHealth.com, www.eHealthInsurance.com, www.eHealthMedicare.com, www.Medicare.com and www.PlanPrescriber.com) or telephonically through its customer care centers. The Company also offers various online and pharmacy-based tools to help seniors navigate Medicare health insurance options, choose the right plan, and enroll in plans online or telephonically. It markets the availability of individual and family, small business and ancillary health insurance plans of various insurance carriers through its e-commerce platforms (www.eHealth.com and www.eHealthInsurance.com).

Willis Towers Watson Public Limited Company Profile

Willis Towers Watson Public Limited Company (Willis Towers Watson) is a holding company. The Company operates as a global advisory, broking and solutions company. It is engaged in offering risk management, insurance broking, consulting, technology and solutions, and private exchanges. The Company operates through eight segments: Willis International; Willis North America; Willis Capital, Wholesale & Reinsurance (CWR); Willis GB; Towers Watson Benefits; Towers Watson Exchange Solutions; Towers Watson Risk and Financial Services; and Towers Watson Talent and Rewards. The Willis GB segment comprises four business units: Property and Casualty, Transport, Financial Lines and Retail Networks. The Willis Capital Wholesale and Reinsurance segment includes Willis Re; Willis Capital Markets & Advisory; Willis’ wholesale business, and Willis Portfolio Underwriting Services. The Willis North America segment provides risk management, insurance brokerage and related risk services.

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