Universal American (NYSE: UAM) is one of 14 publicly-traded companies in the “Managed Health Care” industry, but how does it weigh in compared to its competitors? We will compare Universal American to related companies based on the strength of its dividends, risk, valuation, institutional ownership, analyst recommendations, earnings and profitability.
Volatility & Risk
Universal American has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, Universal American’s competitors have a beta of 0.76, suggesting that their average share price is 24% less volatile than the S&P 500.
This table compares Universal American and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Universal American Competitors||1.70%||10.28%||3.36%|
Insider & Institutional Ownership
85.7% of Universal American shares are owned by institutional investors. Comparatively, 90.3% of shares of all “Managed Health Care” companies are owned by institutional investors. 7.7% of Universal American shares are owned by company insiders. Comparatively, 2.4% of shares of all “Managed Health Care” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Universal American and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Universal American Competitors||$52.70 billion||$3.80 billion||18.36|
Universal American’s competitors have higher revenue and earnings than Universal American. Universal American is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of current ratings and price targets for Universal American and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Universal American Competitors||79||880||1442||23||2.58|
Universal American currently has a consensus target price of $10.00, suggesting a potential upside of 0.30%. As a group, “Managed Health Care” companies have a potential downside of 3.56%. Given Universal American’s higher possible upside, research analysts clearly believe Universal American is more favorable than its competitors.
Universal American competitors beat Universal American on 8 of the 11 factors compared.
Universal American Company Profile
Universal American Corp. provides an array of health insurance and managed care products and services to people covered by Medicare. The Company’s segments include Medicare Advantage, Management Services Organization (MSO), and Corporate & Other. The Medicare Advantage segment contains the operations of its initiatives in managed care for seniors. It operated 16 Medicare Shared Saving Program Accountable Care Organizations (ACOs) and two Next Generation ACOs, which included approximately 5,200 participating providers with approximately 221,800 assigned Medicare fee-for-service beneficiaries, as of December 31, 2016. The MSO segment supports its physician partnerships in the development of healthcare models, such as ACOs, with a range of capabilities and resources, including technology, analytics, clinical care coordination, regulatory compliance and program administration. It has developed a primary care physician alignment strategy, which is branded as The Healthy Collaboration.
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