Analyzing Universal American (UAM) and Cigna Corporation (CI)
Universal American (NYSE: UAM) and Cigna Corporation (NYSE:CI) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.
This table compares Universal American and Cigna Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Universal American and Cigna Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cigna Corporation||$40.53 billion||1.14||$4.21 billion||$8.68||21.10|
Cigna Corporation has higher revenue and earnings than Universal American. Universal American is trading at a lower price-to-earnings ratio than Cigna Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
85.7% of Universal American shares are owned by institutional investors. Comparatively, 88.0% of Cigna Corporation shares are owned by institutional investors. 7.7% of Universal American shares are owned by insiders. Comparatively, 1.3% of Cigna Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Cigna Corporation pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Universal American does not pay a dividend. Cigna Corporation pays out 0.5% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and target prices for Universal American and Cigna Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Universal American currently has a consensus price target of $10.00, indicating a potential upside of 0.30%. Cigna Corporation has a consensus price target of $180.00, indicating a potential downside of 1.73%. Given Universal American’s higher probable upside, equities research analysts plainly believe Universal American is more favorable than Cigna Corporation.
Risk & Volatility
Universal American has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, Cigna Corporation has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.
Cigna Corporation beats Universal American on 9 of the 13 factors compared between the two stocks.
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.
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.
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