Critical Survey: AIX (NASDAQ:AIFU) and Huize (NASDAQ:HUIZ)

Profitability

This table compares AIX and Huize’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AIX	N/A	N/A	N/A
Huize	1.75%	5.07%	2.16%

Valuation & Earnings

This table compares AIX and Huize”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AIX	$450.48 million	0.04	$39.50 million	$0.73	0.44
Huize	$168.39 million	0.18	$9.89 million	$0.09	34.23

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

Volatility & Risk

AIX has a beta of -0.07, suggesting that its stock price is 107% less volatile than the S&P 500. Comparatively, Huize has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Institutional and Insider Ownership

26.7% of AIX shares are owned by institutional investors. 25.6% of AIX shares are owned by company insiders. Comparatively, 30.4% of Huize shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Huize beats AIX on 7 of the 11 factors compared between the two stocks.

About AIX

AIX, Inc. engages in the provision of agency services and insurance claims adjusting services. It operates through the Insurance Agency and Claims Adjusting segments. The Insurance Agency segment includes providing agency services for insurance products and life insurance products. The Claims Adjusting segment provides pre-underwriting survey services, claims adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The company was founded by Yin An Hu and Qiu Ping Lai in 1998 and is headquartered in Guangzhou, China.

About Huize

Huize Holding Limited, together with its subsidiaries, offers online insurance product and service platform through various internet channels in the People's Republic of China. The company provides life and health insurance products, such as critical illness, illness and disease, annuity, and term and whole life insurance products; and property and casualty insurance products, including travel, individual casualty, and corporate liability insurance products. It also offers offline insurance intermediary and brokerage services. The company also provides digital and technology development services; investment, technology development, internet information, management, and financial consulting services; business management and catering services; and insurance agency services. Huize Holding Limited was founded in 2006 and is headquartered in Shenzhen, China.