Head-To-Head Analysis: XChange TEC.INC (NASDAQ:XHG) versus GoHealth (NASDAQ:GOCO)

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

Earnings and Valuation

This table compares XChange TEC.INC and GoHealth”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XChange TEC.INC	$41.09 million	0.01	-$32.32 million	N/A	N/A
GoHealth	$734.67 million	0.55	-$63.26 million	($3.50)	-5.06

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

Risk and Volatility

XChange TEC.INC has a beta of -0.76, meaning that its share price is 176% less volatile than the S&P 500. Comparatively, GoHealth has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for XChange TEC.INC and GoHealth, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XChange TEC.INC	0	0	0	0	0.00
GoHealth	0	1	0	0	2.00

GoHealth has a consensus price target of $13.00, suggesting a potential downside of 26.60%. Given GoHealth’s stronger consensus rating and higher possible upside, analysts clearly believe GoHealth is more favorable than XChange TEC.INC.

Institutional and Insider Ownership

24.2% of GoHealth shares are held by institutional investors. 0.6% of XChange TEC.INC shares are held by insiders. Comparatively, 35.0% of GoHealth shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XChange TEC.INC	N/A	N/A	N/A
GoHealth	-4.32%	-17.17%	-4.58%

Summary

GoHealth beats XChange TEC.INC on 7 of the 11 factors compared between the two stocks.

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.

About GoHealth

GoHealth, Inc. operates as a health insurance marketplace and Medicare-focused digital health company in the United States. The company operates a technology platform that leverages machine-learning algorithms of insurance behavioral data to optimize the process for helping individuals find the health insurance plan for their specific needs. It provides Medicare plans, including Medicare Advantage, Medicare Supplement and Prescription Drug, and Medicare Special Needs Plans. The company also offers partner marketing services. It sells its products through carriers and online platform, as well as independent and external agencies. The company was founded in 2001 and is headquartered in Chicago, Illinois.