Analyzing Willis Towers Watson Public Limited (WLTW) and eHealth (EHTH)

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Willis Towers Watson Public Limited and eHealth, as provided by MarketBeat.

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

Willis Towers Watson Public Limited currently has a consensus price target of $152.82, indicating a potential upside of 1.87%. eHealth has a consensus price target of $17.67, indicating a potential downside of 2.66%. Given Willis Towers Watson Public Limited’s higher possible upside, research analysts clearly believe Willis Towers Watson Public Limited is more favorable than eHealth.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Willis Towers Watson Public Limited $7.90 billion 2.55 $1.57 billion $2.76 54.35
eHealth $182.74 million 1.84 -$4.31 million ($0.35) -51.86

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.

Profitability

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

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

Institutional & Insider Ownership

92.5% of Willis Towers Watson Public Limited shares are owned by institutional investors. Comparatively, 92.2% of eHealth shares are owned by institutional investors. 6.7% of Willis Towers Watson Public Limited shares are owned by company insiders. Comparatively, 6.2% of eHealth shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

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.

Volatility & Risk

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

Summary

Willis Towers Watson Public Limited beats eHealth on 12 of the 15 factors compared between the two stocks.

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.

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).

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