Financial Survey: Connecture (CNXR) and Its Peers

Connecture (NASDAQ: CNXR) is one of 50 public companies in the “Internet Services” industry, but how does it contrast to its rivals? We will compare Connecture to similar businesses based on the strength of its valuation, dividends, risk, profitability, institutional ownership, analyst recommendations and earnings.

Volatility & Risk

Connecture has a beta of 2.15, indicating that its share price is 115% more volatile than the S&P 500. Comparatively, Connecture’s rivals have a beta of 1.36, indicating that their average share price is 36% more volatile than the S&P 500.

Valuation and Earnings

This table compares Connecture and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Connecture $82.18 million -$8.20 million -0.68
Connecture Competitors $949.69 million $126.71 million 54.62

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

Analyst Ratings

This is a breakdown of current recommendations for Connecture and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Connecture 0 0 0 0 N/A
Connecture Competitors 439 1683 2620 104 2.49

As a group, “Internet Services” companies have a potential upside of 5.99%. Given Connecture’s rivals higher possible upside, analysts plainly believe Connecture has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

38.8% of Connecture shares are held by institutional investors. Comparatively, 73.6% of shares of all “Internet Services” companies are held by institutional investors. 58.1% of Connecture shares are held by company insiders. Comparatively, 20.3% of shares of all “Internet Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Connecture and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Connecture -27.38% N/A -23.17%
Connecture Competitors 0.34% 26.56% 6.13%

Summary

Connecture rivals beat Connecture on 7 of the 9 factors compared.

About Connecture

Connecture, Inc. provides a Web-based consumer shopping, enrollment and retention platform for health insurance distribution. The Company caters its services to health insurance marketplace operators, such as health plans, brokers and exchange operators. It operates through four segments: Enterprise/Commercial, Enterprise/State, Medicare and Private Exchange. The Enterprise/Commercial segment offers insurance distribution solutions to health plans. The Enterprise/State segment offers the sales automation solutions to state Governments, which allow its customers to offer customized individual and small group exchanges. The Medicare segment offers Web-based Medicare plan comparison, prescription drug comparison and enrollment tools for health plans, pharmacy benefit managers, pharmacies, field marketing organizations and call centers. The Private Exchange segment offers defined-contribution benefit exchange solutions to benefit consultants, brokers, exchange operators and aggregators.

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