Comparing Zhibao Technology (NASDAQ:ZBAO) & eHealth (NASDAQ:EHTH)

eHealth (NASDAQ:EHTH) and Zhibao Technology (NASDAQ:ZBAO) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current ratings and target prices for eHealth and Zhibao Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eHealth	0	3	1	0	2.25
Zhibao Technology	0	0	0	0	0.00

eHealth presently has a consensus price target of $6.38, suggesting a potential downside of 35.67%. Given eHealth’s stronger consensus rating and higher possible upside, analysts clearly believe eHealth is more favorable than Zhibao Technology.

Profitability

This table compares eHealth and Zhibao Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
eHealth	-7.58%	-5.70%	-3.00%
Zhibao Technology	N/A	N/A	N/A

Insider & Institutional Ownership

79.5% of eHealth shares are held by institutional investors. 4.1% of eHealth shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares eHealth and Zhibao Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eHealth	$464.89 million	0.63	-$28.21 million	($2.85)	-3.48
Zhibao Technology	$183.67 million	0.26	N/A	N/A	N/A

Zhibao Technology has lower revenue, but higher earnings than eHealth.

Summary

eHealth beats Zhibao Technology on 7 of the 10 factors compared between the two stocks.

About eHealth

eHealth, Inc. operates a health insurance marketplace that provides consumer engagement, education, and health insurance enrollment solutions in the United States. The company operates in two segments, Medicare; and Employer and Individual. The Medicare segment offers sale of Medicare-related health insurance plans, which includes Medicare advantage, Medicare Supplement, and Medicare Part D prescription drug plans to Medicare-eligible customers including but not limited to, dental, and vision insurance, as well as advertising program for marketing and other services. The Employer and Individual segment engages in the sale of individual, family, and small business health insurance plans; and ancillary products to non-Medicare-eligible customers including but not limited to, dental, vision, and short and long term disability insurance. In addition, the company provides ecommerce platforms and consumer engagement solutions, which includes market leading information, decision support, customer engagement, and transactional services to group of health insurance consumers; and organize and present the insurance information in objective format to individuals, families, and small businesses to research, analyze, compare and purchase health insurance plans. Further, it markets health insurance plans through its websites, including eHealth.com, eHealthInsurance.com, eHealthMedicare.com, Medicare.com, PlanPrescriber.com, and GoMedigap.com. The company also offers online sponsorship and advertising, non-broker of record, lead referral, technology licensing, as well as performs various post-enrollment services for members in Medicare health insurance plans. eHealth, Inc. was incorporated in 1997 and is headquartered in Austin, Texas.

About Zhibao Technology

Zhibao Technology Inc., through its subsidiaries, provides digital insurance brokerage services in China. It also offers managing general underwriter services; and offline insurance brokerage consulting services. The company was founded in 2015 and is based in Shanghai, China.