Cigna Corporation (CI) vs. Its Rivals Critical Comparison

Cigna Corporation (NYSE: CI) is one of 14 publicly-traded companies in the “Managed Health Care” industry, but how does it contrast to its peers? We will compare Cigna Corporation to related companies based on the strength of its valuation, dividends, analyst recommendations, risk, earnings, institutional ownership and profitability.

Valuation and Earnings

This table compares Cigna Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cigna Corporation $40.53 billion $4.21 billion 22.72
Cigna Corporation Competitors $52.70 billion $3.80 billion 16.97

Cigna Corporation’s peers have higher revenue, but lower earnings than Cigna Corporation. Cigna Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations for Cigna Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cigna Corporation 0 2 12 0 2.86
Cigna Corporation Competitors 79 886 1445 23 2.58

Cigna Corporation presently has a consensus price target of $192.00, indicating a potential downside of 2.65%. As a group, “Managed Health Care” companies have a potential downside of 2.92%. Given Cigna Corporation’s stronger consensus rating and higher probable upside, research analysts clearly believe Cigna Corporation is more favorable than its peers.

Dividends

Cigna Corporation pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Cigna Corporation pays out 0.5% of its earnings in the form of a dividend. As a group, “Managed Health Care” companies pay a dividend yield of 0.9% and pay out 20.3% of their earnings in the form of a dividend.

Risk & Volatility

Cigna Corporation has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Cigna Corporation’s peers have a beta of 0.77, suggesting that their average share price is 23% less volatile than the S&P 500.

Profitability

This table compares Cigna Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cigna Corporation 5.55% 17.40% 4.04%
Cigna Corporation Competitors 1.85% 11.10% 3.61%

Insider & Institutional Ownership

88.2% of Cigna Corporation shares are owned by institutional investors. Comparatively, 90.3% of shares of all “Managed Health Care” companies are owned by institutional investors. 1.3% of Cigna Corporation 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Cigna Corporation beats its peers on 9 of the 15 factors compared.

Cigna Corporation Company Profile

Cigna Corporation (Cigna), together with its subsidiaries, is a health services company. The Company offers medical, dental, disability, life and accident insurance and related products and services. The Company’s segments include Global Health Care, Global Supplemental Benefits, Group Disability and Life, and Other Operations and Corporate. Its Global Health Care segment aggregates the commercial and Government operating segments. Its commercial operating segment encompasses the United States commercial and certain international healthcare businesses serving employers and their employees, other groups, and individuals. Its Global Supplemental Benefits segment offers supplemental health, life and accident insurance products in selected international markets and in the United States. Its Group Disability and Life segment provides group long-term and short-term disability insurance, group life insurance, accident and specialty insurance and related services.

What are top analysts saying about Cigna Corporation? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Cigna Corporation and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit