Financial Contrast: Universal American (UAM) versus Its Competitors

Universal American (NYSE: UAM) is one of 14 public companies in the “Managed Health Care” industry, but how does it weigh in compared to its competitors? We will compare Universal American to related businesses based on the strength of its valuation, institutional ownership, earnings, dividends, analyst recommendations, profitability and risk.

Risk and Volatility

Universal American has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, Universal American’s competitors have a beta of 0.77, meaning that their average share price is 23% less volatile than the S&P 500.

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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Universal American and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Universal American N/A N/A N/A
Universal American Competitors $50.73 billion $1.52 billion 20.32

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.

Profitability

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 -5.12% -24.95% -8.23%
Universal American Competitors 1.74% 10.90% 3.51%

Analyst Recommendations

This is a summary of current recommendations for Universal American and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal American 0 2 0 0 2.00
Universal American Competitors 79 890 1453 23 2.58

Universal American presently has a consensus target price of $10.00, indicating a potential upside of Infinity. As a group, “Managed Health Care” companies have a potential upside of 1.12%. Given Universal American’s higher possible upside, analysts clearly believe Universal American is more favorable than its competitors.

Summary

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.

What are top analysts saying about Universal American Co.? - 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 Universal American Co. 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