XChange TEC.INC (NASDAQ:XHG – Get Free Report) and SelectQuote (NYSE:SLQT – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.
Valuation & Earnings
This table compares XChange TEC.INC and SelectQuote”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| XChange TEC.INC | $288.37 million | 0.00 | -$32.32 million | N/A | N/A |
| SelectQuote | $1.46 billion | 0.50 | -$34.12 million | ($0.09) | -47.33 |
XChange TEC.INC has higher earnings, but lower revenue than SelectQuote.
Risk and Volatility
Profitability
This table compares XChange TEC.INC and SelectQuote’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| XChange TEC.INC | N/A | N/A | N/A |
| SelectQuote | -0.95% | -4.38% | -1.13% |
Analyst Ratings
This is a summary of recent recommendations for XChange TEC.INC and SelectQuote, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| XChange TEC.INC | 0 | 0 | 0 | 0 | 0.00 |
| SelectQuote | 0 | 1 | 1 | 1 | 3.00 |
SelectQuote has a consensus price target of $4.25, suggesting a potential downside of 0.23%. Given SelectQuote’s stronger consensus rating and higher probable upside, analysts clearly believe SelectQuote is more favorable than XChange TEC.INC.
Insider & Institutional Ownership
34.6% of SelectQuote shares are owned by institutional investors. 0.6% of XChange TEC.INC shares are owned by company insiders. Comparatively, 11.4% of SelectQuote shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
SelectQuote beats XChange TEC.INC on 9 of the 13 factors compared between the two stocks.
About XChange TEC.INC
XChange TEC.INC engages in the professional insurance agency business in the People’s Republic of China. The company provides a various insurance products underwritten by insurance companies, including state-owned property and casualty insurance companies, as well as various regional property and casualty insurance companies. It also offers automobile, life, health, group accident, and other property related insurances primarily to individual end consumers. In addition, the company operates a SaaS platform to offer comprehensive services to online customers. It sells insurance primarily through a network of external referral sources that include external registered sales representatives and strategic channel partners, as well as through the in-house sales force. The company was formerly known as FLJ Group Limited and changed its name to XChange TEC.INC in May 2024. XChange TEC.INC was founded in 2012 and is based in Shanghai, the People’s Republic of China.
About SelectQuote
SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies. The company also provides SelectRx, an accredited patient-centered pharmacy home pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, medication therapy management, and long-term pharmacy care; and population health that helps members understand the benefits available under their health plans, and contracts with insurance carriers. SelectQuote, Inc. was incorporated in 1999 and is headquartered in Overland Park, Kansas.
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