AIX (NASDAQ:AIFU) & Waterdrop (NYSE:WDH) Critical Contrast

Profitability

This table compares AIX and Waterdrop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AIX	N/A	N/A	N/A
Waterdrop	11.69%	7.02%	5.27%

Institutional and Insider Ownership

26.7% of AIX shares are held by institutional investors. Comparatively, 2.0% of Waterdrop shares are held by institutional investors. 25.6% of AIX shares are held by company insiders. Comparatively, 24.6% of Waterdrop 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.

Earnings and Valuation

This table compares AIX and Waterdrop”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AIX	$2.36 billion	0.01	$39.50 million	$0.73	0.53
Waterdrop	$2.74 billion	0.17	$23.06 million	$0.12	10.21

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

Risk & Volatility

AIX has a beta of -0.15, meaning that its stock price is 115% less volatile than the S&P 500. Comparatively, Waterdrop has a beta of -0.26, meaning that its stock price is 126% less volatile than the S&P 500.

Summary

Waterdrop beats AIX on 6 of the 11 factors compared between the two stocks.

About AIX

AIX, Inc. engages in the provision of agency services and insurance claims adjusting services. It operates through the Insurance Agency and Claims Adjusting segments. The Insurance Agency segment includes providing agency services for insurance products and life insurance products. The Claims Adjusting segment provides pre-underwriting survey services, claims adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The company was founded by Yin An Hu and Qiu Ping Lai in 1998 and is headquartered in Guangzhou, China.

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.