Zhibao Technology (NASDAQ:ZBAO) & SelectQuote (NYSE:SLQT) Critical Analysis

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

Earnings and Valuation

This table compares Zhibao Technology and SelectQuote”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zhibao Technology	N/A	N/A	N/A	N/A	N/A
SelectQuote	$1.32 billion	0.29	-$34.12 million	($0.32)	-7.05

Zhibao Technology has higher earnings, but lower revenue than SelectQuote.

Profitability

This table compares Zhibao Technology and SelectQuote’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zhibao Technology	N/A	N/A	N/A
SelectQuote	-2.58%	-10.37%	-2.82%

Institutional & Insider Ownership

34.6% of SelectQuote shares are owned by institutional investors. 10.4% of SelectQuote shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Zhibao Technology and SelectQuote, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zhibao Technology	0	0	0	0	N/A
SelectQuote	0	0	2	0	3.00

SelectQuote has a consensus target price of $4.75, indicating a potential upside of 110.64%. Given SelectQuote’s higher probable upside, analysts clearly believe SelectQuote is more favorable than Zhibao Technology.

Summary

SelectQuote beats Zhibao Technology on 5 of the 8 factors compared between the two stocks.

About Zhibao Technology

Zhibao Technology Inc., through its subsidiaries, provides digital insurance brokerage services in China. It also offers managing general underwriter services; and offline insurance brokerage consulting services. The company was founded in 2015 and is based in Shanghai, China.

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.