Humana (NYSE: HUM) is one of 14 publicly-traded companies in the “Managed Health Care” industry, but how does it contrast to its rivals? We will compare Humana to related companies based on the strength of its earnings, dividends, valuation, analyst recommendations, risk, institutional ownership and profitability.
Volatility and Risk
Humana has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Humana’s rivals have a beta of 0.77, suggesting that their average stock price is 23% less volatile than the S&P 500.
Insider & Institutional Ownership
95.8% of Humana shares are owned by institutional investors. Comparatively, 90.3% of shares of all “Managed Health Care” companies are owned by institutional investors. 0.8% of Humana 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Humana pays an annual dividend of $1.60 per share and has a dividend yield of 0.6%. Humana pays out 13.1% of its earnings in the form of a dividend. As a group, “Managed Health Care” companies pay a dividend yield of 0.8% and pay out 18.5% of their earnings in the form of a dividend. Humana has increased its dividend for 6 consecutive years.
This is a breakdown of recent ratings and target prices for Humana and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Humana presently has a consensus price target of $252.89, suggesting a potential downside of 1.35%. As a group, “Managed Health Care” companies have a potential upside of 1.35%. Given Humana’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Humana has less favorable growth aspects than its rivals.
Earnings and Valuation
This table compares Humana and its rivals revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Humana||$54.38 billion||$614.00 million||20.93|
|Humana Competitors||$30.82 billion||$793.11 million||20.40|
Humana has higher revenue, but lower earnings than its rivals. Humana is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This table compares Humana and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Humana beats its rivals on 8 of the 15 factors compared.
Humana Company Profile
Humana Inc. is a health and well-being company. The Company’s segments include Retail, Group and Specialty, Healthcare Services and Individual Commercial. The Retail segment consists of Medicare benefits, as well as individual commercial fully insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products. The Group and Specialty segment consists of employer group commercial fully insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health. The Healthcare Services segment includes services offered to its health plan members, as well as to third parties, including pharmacy solutions, provider services, home-based services and clinical programs, as well as services and capabilities to manage population health. The Individual Commercial segment includes Individual Commercial products marketed under the HumanaOne brand.
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