NeueHealth (NYSE:NEUE) and Trupanion (NASDAQ:TRUP) Critical Comparison

Trupanion (NASDAQ:TRUP) and NeueHealth (NYSE:NEUE) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Institutional and Insider Ownership

63.9% of NeueHealth shares are owned by institutional investors. 5.8% of Trupanion shares are owned by company insiders. Comparatively, 64.3% of NeueHealth shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Trupanion and NeueHealth’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trupanion	$1.11 billion	0.85	-$44.69 million	($0.64)	-35.17
NeueHealth	$1.16 billion	0.04	-$1.15 billion	($151.20)	-0.04

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

Risk & Volatility

Trupanion has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, NeueHealth has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Trupanion and NeueHealth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trupanion	0	2	2	0	2.50
NeueHealth	0	1	0	0	2.00

Trupanion presently has a consensus target price of $28.75, suggesting a potential upside of 27.72%. NeueHealth has a consensus target price of $8.00, suggesting a potential upside of 28.00%. Given NeueHealth’s higher possible upside, analysts clearly believe NeueHealth is more favorable than Trupanion.

Profitability

This table compares Trupanion and NeueHealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trupanion	-2.31%	-9.03%	-3.48%
NeueHealth	-71.23%	N/A	-1.21%

Summary

Trupanion beats NeueHealth on 7 of the 13 factors compared between the two stocks.

About Trupanion

Trupanion, Inc., together with its subsidiaries, provides medical insurance for cats and dogs on a monthly subscription basis in the United States, Canada, Continental Europe, and Australia. The company operates in two segments, Subscription Business and Other Business. It serves pet owners and veterinarians. The company was formerly known as Vetinsurance International, Inc. changed its name to Trupanion, Inc. in 2013. Trupanion, Inc. was founded in 2000 and is headquartered in Seattle, Washington.

About NeueHealth

NeueHealth, Inc., a healthcare company, provides various healthcare services for health consumers, providers, and payors in the United States. It operates through two segments: NeueCare and NeueSolutions. The NeueCare segment delivers healthcare services to ACA marketplace, medicare, and medicaid through owned and affiliated clinics. It operates risk-bearing clinics under the Centrum Health, AssociatesMD, and Premier Medical Associates brand names. The company also offers integrated system care solution, such as embedded pharmacy, laboratory, radiology, and population health focused specialty services; and chronic care management, transitions of care, and referral management services. The NeueSolutions segment enables providers and medical groups to succeed in performance-based arrangements; and participates in the centers for healthcare access to medicare beneficiaries. The company was formerly known as Bright Health Group, Inc. and changed its name to NeueHealth, Inc. in January 2024. NeueHealth, Inc. was incorporated in 2015 and is headquartered in Doral, Florida.