Financial Contrast: Equitable (NYSE:EQH) & UMC (OTCMKTS:UMCN)

Equitable (NYSE:EQH) and UMC (OTCMKTS:UMCN) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Risk and Volatility

Equitable has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, UMC has a beta of 23.02, meaning that its share price is 2,202% more volatile than the S&P 500.

Earnings & Valuation

This table compares Equitable and UMC”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equitable	$10.53 billion	1.58	$1.30 billion	($1.09)	-48.78
UMC	N/A	N/A	-$540,000.00	N/A	N/A

Equitable has higher revenue and earnings than UMC.

Profitability

This table compares Equitable and UMC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equitable	-2.64%	76.47%	0.68%
UMC	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and target prices for Equitable and UMC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equitable	0	2	9	0	2.82
UMC	0	0	0	0	0.00

Equitable presently has a consensus price target of $52.18, indicating a potential downside of 1.86%. Given Equitable’s stronger consensus rating and higher possible upside, analysts plainly believe Equitable is more favorable than UMC.

Institutional & Insider Ownership

92.7% of Equitable shares are held by institutional investors. 1.1% of Equitable shares are held by company insiders. Comparatively, 16.8% of UMC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Equitable beats UMC on 8 of the 11 factors compared between the two stocks.

About Equitable

Equitable Holdings, Inc., together with its consolidated subsidiaries, operates as a diversified financial services company worldwide. The company operates through six segments: Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management, and Legacy. The Individual Retirement segment offers a suite of variable annuity products primarily to affluent and high net worth individuals. The Group Retirement segment provides tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses. The Investment Management and Research segment offers diversified investment management, research, and related services to various clients through institutional. The Protection Solutions segment provides life insurance products, such as VUL insurance and IUL insurance, term life, and employee benefits business, such as dental, vision, life, as well as short- and long-term disability insurance products to small and medium-sized businesses. The Wealth Management segment offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products. The Legacy segment consists of the capital intensive fixed-rate GMxB business that includes ROP death benefits. The company was formerly known as AXA Equitable Holdings, Inc. and changed its name to Equitable Holdings, Inc. in January 2020. Equitable Holdings, Inc. was founded in 1859 and is based in New York, New York.

About UMC

UMC, Inc. provides medical insurance claims coding and processing, electronic medical records storage, chargemaster review, pricing comparison, and accounts receivable management services to healthcare providers. Its customers primarily include hospitals, medical clinics, and physician practitioners in the United States. The company was formerly known as United Medicorp, Inc. and changed its name to UMC, Inc. in May 2007. UMC, Inc. was incorporated in 1989 and is based in Pampa, Texas.