Financial Comparison: Waterdrop (WDH) & Its Peers

Waterdrop (NYSE:WDH) is one of 311 publicly-traded companies in the “Insurance” industry, but how does it compare to its peers? We will compare Waterdrop to related companies based on the strength of its earnings, risk, profitability, institutional ownership, dividends, valuation and analyst recommendations.

Profitability

This table compares Waterdrop and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waterdrop	10.69%	10.47%	7.40%
Waterdrop Competitors	9.15%	-9.84%	4.10%

Volatility & Risk

Waterdrop has a beta of -0.17, meaning that its share price is 117% less volatile than the S&P 500. Comparatively, Waterdrop’s peers have a beta of -1.59, meaning that their average share price is 259% less volatile than the S&P 500.

Earnings and Valuation

This table compares Waterdrop and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Waterdrop	$568.81 million	$81.36 million	4.79
Waterdrop Competitors	$15.53 billion	$1.70 billion	34.40

Waterdrop’s peers have higher revenue and earnings than Waterdrop. Waterdrop is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Waterdrop and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waterdrop	1	0	0	0	1.00
Waterdrop Competitors	3336	15674	16522	740	2.40

As a group, “Insurance” companies have a potential upside of 5.98%. Given Waterdrop’s peers stronger consensus rating and higher probable upside, analysts plainly believe Waterdrop has less favorable growth aspects than its peers.

Institutional and Insider Ownership

2.0% of Waterdrop shares are held by institutional investors. Comparatively, 55.8% of shares of all “Insurance” companies are held by institutional investors. 24.6% of Waterdrop shares are held by insiders. Comparatively, 13.6% of shares of all “Insurance” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Waterdrop pays an annual dividend of $0.05 per share and has a dividend yield of 5.0%. Waterdrop pays out 23.8% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 2.9% and pay out 31.0% of their earnings in the form of a dividend. Waterdrop is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Summary

Waterdrop peers beat Waterdrop on 8 of the 15 factors compared.

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.