Waterdrop (NYSE:WDH) versus Crawford & Company (NYSE:CRD.B) Financial Analysis

Institutional & Insider Ownership

2.0% of Waterdrop shares are owned by institutional investors. Comparatively, 11.0% of Crawford & Company shares are owned by institutional investors. 24.6% of Waterdrop shares are owned by company insiders. Comparatively, 51.0% of Crawford & Company shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Waterdrop and Crawford & Company’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%
Crawford & Company	1.55%	22.34%	4.18%

Dividends

Waterdrop pays an annual dividend of $0.03 per share and has a dividend yield of 2.0%. Crawford & Company pays an annual dividend of $0.28 per share and has a dividend yield of 2.7%. Waterdrop pays out 21.4% of its earnings in the form of a dividend. Crawford & Company pays out 46.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility and Risk

Waterdrop has a beta of -0.29, meaning that its stock price is 129% less volatile than the S&P 500. Comparatively, Crawford & Company has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Valuation & Earnings

This table compares Waterdrop and Crawford & Company”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waterdrop	$2.77 billion	0.19	$23.06 million	$0.14	10.54
Crawford & Company	$1.35 billion	0.38	$30.61 million	$0.60	17.40

Crawford & Company has lower revenue, but higher earnings than Waterdrop. Waterdrop is trading at a lower price-to-earnings ratio than Crawford & Company, indicating that it is currently the more affordable of the two stocks.

Summary

Crawford & Company beats Waterdrop on 9 of the 13 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 Crawford & Company

Crawford & Co. engages in the provision of claims management and outsourcing solutions to carriers, brokers, and corporates. It operates through the following segments: Crawford Loss Adjusting, Crawford TPA Solutions, and Crawford Platform Solutions. The Crawford Loss Adjusting segment consists of adjusting services provided to insurance companies and self-insured entities related to property and casualty losses caused by physical damage to commercial and residential real property and certain types of personal property. The Crawford TPA Solutions segment provides third party administration for workers’ compensation, auto and liability, disability absence management, medical management, and accident and health to corporations, brokers, and insurers worldwide. The Crawford Platform Solutions segment is involved in the management of contractor networks and the provision of claims management services to insurance companies and self-insured entities related to property, casualty, and catastrophic losses. The company was founded by Jim Crawford in 1941 and is headquartered in Peachtree Corners, GA.