SelectQuote (NYSE:SLQT – Get Free Report) and CNA Financial (NYSE:CNA – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.
Valuation & Earnings
This table compares SelectQuote and CNA Financial”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SelectQuote | $1.62 billion | 0.06 | $62.19 million | ($0.08) | -6.74 |
| CNA Financial | $14.86 billion | 0.90 | $1.28 billion | $4.55 | 10.81 |
Institutional and Insider Ownership
34.6% of SelectQuote shares are held by institutional investors. Comparatively, 98.4% of CNA Financial shares are held by institutional investors. 13.1% of SelectQuote shares are held by company insiders. Comparatively, 0.3% of CNA Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares SelectQuote and CNA Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SelectQuote | 3.84% | 19.70% | 5.33% |
| CNA Financial | 8.16% | 11.34% | 1.84% |
Analyst Recommendations
This is a breakdown of current recommendations for SelectQuote and CNA Financial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SelectQuote | 2 | 1 | 0 | 1 | 2.00 |
| CNA Financial | 0 | 1 | 1 | 0 | 2.50 |
SelectQuote presently has a consensus price target of $3.00, indicating a potential upside of 456.59%. Given SelectQuote’s higher possible upside, research analysts clearly believe SelectQuote is more favorable than CNA Financial.
Volatility and Risk
SelectQuote has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, CNA Financial has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500.
Summary
CNA Financial beats SelectQuote on 9 of the 15 factors compared between the two stocks.
About SelectQuote
SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies. The company also provides SelectRx, an accredited patient-centered pharmacy home pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, medication therapy management, and long-term pharmacy care; and population health that helps members understand the benefits available under their health plans, and contracts with insurance carriers. SelectQuote, Inc. was incorporated in 1999 and is headquartered in Overland Park, Kansas.
About CNA Financial
CNA Financial Corporation provides commercial property and casualty insurance products in the United States and internationally. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The company offers professional liability coverages and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, employment practices, fiduciary, and fidelity and cyber coverages to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products. It also provides property, marine, boiler, and machinery coverage insurance products; casualty insurance products comprising workers' compensation, general and product liability, commercial auto, umbrella, and excess and surplus coverages; specialized loss-sensitive insurance programs and total risk management services; and run-off long term care policies. The company was founded in 1853 and is based in Chicago, Illinois. CNA Financial Corporation operates as a subsidiary of Loews Corporation.
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