Reviewing XChange TEC.INC (NASDAQ:XHG) and Willis Towers Watson Public (NASDAQ:WTW)

XChange TEC.INC (NASDAQ:XHG) and Willis Towers Watson Public (NASDAQ:WTW) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Valuation and Earnings

This table compares XChange TEC.INC and Willis Towers Watson Public”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XChange TEC.INC	$288.37 million	0.00	-$32.32 million	N/A	N/A
Willis Towers Watson Public	$9.93 billion	3.30	-$98.00 million	($1.00)	-328.33

XChange TEC.INC has higher earnings, but lower revenue than Willis Towers Watson Public.

Profitability

This table compares XChange TEC.INC and Willis Towers Watson Public’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
Willis Towers Watson Public	-0.99%	20.02%	6.03%

Institutional & Insider Ownership

93.1% of Willis Towers Watson Public shares are held by institutional investors. 0.6% of XChange TEC.INC shares are held by insiders. Comparatively, 0.2% of Willis Towers Watson Public shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for XChange TEC.INC and Willis Towers Watson Public, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XChange TEC.INC	0	0	0	0	0.00
Willis Towers Watson Public	1	3	8	1	2.69

Willis Towers Watson Public has a consensus target price of $342.08, suggesting a potential upside of 4.19%. Given Willis Towers Watson Public’s stronger consensus rating and higher possible upside, analysts plainly believe Willis Towers Watson Public is more favorable than XChange TEC.INC.

Risk and Volatility

XChange TEC.INC has a beta of -0.78, indicating that its stock price is 178% less volatile than the S&P 500. Comparatively, Willis Towers Watson Public has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Summary

Willis Towers Watson Public beats XChange TEC.INC on 10 of the 13 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 Willis Towers Watson Public

Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company worldwide. It operates through two segments: Health, Wealth & Career and Risk & Broking. The company offers strategy and design consulting, plan management service and support, broking and administration services for health, wellbeing, and other group benefit program, including medical, dental, disability, life, voluntary benefits and other coverages; actuarial support, plan design, and administrative services for pension and retirement savings plans; retirement consulting services and solutions; and integrated solutions that consists of investment discretionary management, pension administration, core actuarial, and communication and change management assistance services. It also provides advice, data, software, and products to address clients' total rewards and talent issues; and risk advice, insurance brokerage, and consulting services in the areas of property and casualty, affinity, risk and analytics, aerospace, construction, global markets direct & facultative, financial, executive and professional risks, financial solutions, crisis management, surety, marine, and natural resources. In addition, the company offers integrated solutions that consists of investment discretionary management, pension administration, core actuarial, and communication and change management assistance services; and software and technology, risk and capital management, products and product pricing, financial and regulatory reporting, financial and capital modeling, M&A, outsourcing, and business management services. The company was formerly known as Willis Group Holdings Public Limited Company and changed its name to Willis Towers Watson Public Limited Company in January 2016. Willis Towers Watson Public Limited Company was founded in 1828 and is based in London, the United Kingdom.