Financial Contrast: Waterdrop (NYSE:WDH) versus XChange TEC.INC (NASDAQ:XHG)

Volatility and Risk

Waterdrop has a beta of -0.25, indicating that its stock price is 125% less volatile than the S&P 500. Comparatively, XChange TEC.INC has a beta of -0.76, indicating that its stock price is 176% less volatile than the S&P 500.

Institutional and Insider Ownership

2.0% of Waterdrop shares are held by institutional investors. 24.6% of Waterdrop shares are held by company insiders. Comparatively, 0.6% of XChange TEC.INC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Waterdrop and XChange TEC.INC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waterdrop	11.69%	7.02%	5.27%
XChange TEC.INC	N/A	N/A	N/A

Earnings and Valuation

This table compares Waterdrop and XChange TEC.INC”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waterdrop	$370.53 million	1.33	$23.06 million	$0.12	11.08
XChange TEC.INC	$41.09 million	0.01	-$32.32 million	N/A	N/A

Waterdrop has higher revenue and earnings than XChange TEC.INC.

Summary

Waterdrop beats XChange TEC.INC on 9 of the 9 factors compared between the two stocks.

About Waterdrop

Waterdrop Inc., through its subsidiaries, provides online insurance brokerage services to match and connect users with related insurance products underwritten by insurance companies in the People's Republic of China. The company offers short-term health and long-term health and life insurance products and services. It also operates a medical crowdfunding platform. Waterdrop Inc. was founded in 2016 and is headquartered in Beijing, the People's Republic of China.

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.