Head-To-Head Contrast: XChange TEC.INC (NASDAQ:XHG) & SelectQuote (NYSE:SLQT)

SelectQuote (NYSE:SLQT) and XChange TEC.INC (NASDAQ:XHG) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SelectQuote	-0.95%	-4.38%	-1.13%
XChange TEC.INC	N/A	N/A	N/A

Risk and Volatility

SelectQuote has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, XChange TEC.INC has a beta of -0.76, indicating that its share price is 176% less volatile than the S&P 500.

Insider & Institutional Ownership

34.6% of SelectQuote shares are held by institutional investors. 11.4% of SelectQuote 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for SelectQuote and XChange TEC.INC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SelectQuote	0	1	1	1	3.00
XChange TEC.INC	0	0	0	0	0.00

SelectQuote currently has a consensus price target of $4.25, suggesting a potential downside of 0.23%. Given SelectQuote’s stronger consensus rating and higher probable upside, equities analysts plainly believe SelectQuote is more favorable than XChange TEC.INC.

Earnings & Valuation

This table compares SelectQuote 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
SelectQuote	$1.46 billion	0.50	-$34.12 million	($0.09)	-47.33
XChange TEC.INC	$288.37 million	0.00	-$32.32 million	N/A	N/A

XChange TEC.INC has lower revenue, but higher earnings than SelectQuote.

Summary

SelectQuote beats XChange TEC.INC on 9 of the 13 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 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.