Contrasting NeueHealth (NYSE:NEUE) and Bright Health Group (NYSE:BHG)

Bright Health Group (NYSE:BHG) and NeueHealth (NYSE:NEUE) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Profitability

This table compares Bright Health Group and NeueHealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bright Health Group	-85.40%	N/A	-10.26%
NeueHealth	-89.78%	-5.62%	2.57%

Risk and Volatility

Bright Health Group has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, NeueHealth has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Bright Health Group and NeueHealth, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bright Health Group	0	0	0	0	N/A
NeueHealth	0	1	0	0	2.00

NeueHealth has a consensus price target of $8.00, suggesting a potential upside of 51.19%. Given NeueHealth’s higher possible upside, analysts clearly believe NeueHealth is more favorable than Bright Health Group.

Institutional and Insider Ownership

63.9% of NeueHealth shares are held by institutional investors. 58.4% of Bright Health Group shares are held by company insiders. Comparatively, 64.3% of NeueHealth shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Bright Health Group and NeueHealth’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bright Health Group	$2.76 billion	0.01	-$1.46 billion	($208.73)	-0.02
NeueHealth	$1.03 billion	0.04	-$1.15 billion	($130.73)	-0.04

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

Summary

NeueHealth beats Bright Health Group on 7 of the 12 factors compared between the two stocks.

About Bright Health Group

Bright Health Group, Inc., a healthcare company, provides health insurance policies in the United States. It operates in two segments, Bright HealthCare and Consumer Care. The Consumer Care segment delivers virtual and in-person clinical care services contracts through primary care clinics. It operates managed and affiliated risk-bearing clinics within its integrated care delivery system, which included embedded pharmacy, laboratory, radiology, and population health focused specialty services. The Bright HealthCare segment offers medicare health plan products to consumers. The company was formerly known as Bright Health Inc. and changed its name to Bright Health Group, Inc. in February 2021. Bright Health Group, Inc. was incorporated in 2015 and is headquartered in Minneapolis, Minnesota.

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.