Head to Head Analysis: Premier (PINC) and Its Peers

Premier (NASDAQ: PINC) is one of 15 publicly-traded companies in the “Hospitals, Clinics & Primary Care Services” industry, but how does it weigh in compared to its peers? We will compare Premier to similar companies based on the strength of its dividends, institutional ownership, earnings, analyst recommendations, profitability, valuation and risk.

Risk and Volatility

Premier has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, Premier’s peers have a beta of 0.83, meaning that their average stock price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Premier and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Premier 1 1 7 0 2.67
Premier Competitors 57 326 509 9 2.52

Premier presently has a consensus price target of $38.86, suggesting a potential upside of 34.41%. As a group, “Hospitals, Clinics & Primary Care Services” companies have a potential upside of 21.60%. Given Premier’s stronger consensus rating and higher possible upside, research analysts plainly believe Premier is more favorable than its peers.

Institutional & Insider Ownership

38.3% of Premier shares are held by institutional investors. Comparatively, 69.6% of shares of all “Hospitals, Clinics & Primary Care Services” companies are held by institutional investors. 17.5% of Premier shares are held by company insiders. Comparatively, 10.4% of shares of all “Hospitals, Clinics & Primary Care Services” companies are held 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.

Earnings & Valuation

This table compares Premier and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Premier $1.45 billion $113.42 million -6.90
Premier Competitors $1.06 billion -$22.56 million 690.45

Premier has higher revenue and earnings than its peers. Premier is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

Net Margins Return on Equity Return on Assets
Premier 17.99% -18.31% 10.21%
Premier Competitors 3.52% 3.52% 4.31%

Summary

Premier beats its peers on 8 of the 13 factors compared.

Premier Company Profile

Premier, Inc. is a healthcare improvement company. The Company is uniting an alliance of approximately 3,900 United States hospitals and health systems and approximately 150,000 other providers and organizations to transform healthcare. The Company operates healthcare group purchasing organizations and also provides integrated data and analytics, supply chain solutions, advisory services, performance improvement collaborative and other services. The Company plays a role in the healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide.

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