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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Anthem and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anthem 0 8 9 0 2.53
Anthem Competitors 79 873 1435 22 2.58

Anthem presently has a consensus target price of $190.27, suggesting a potential downside of 2.75%. As a group, “Managed Health Care” companies have a potential upside of 0.20%. Given Anthem’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Anthem has less favorable growth aspects than its rivals.

Volatility and Risk

Anthem has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Anthem’s rivals have a beta of 0.76, indicating that their average share price is 24% less volatile than the S&P 500.

Earnings & Valuation

This table compares Anthem and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Anthem $88.03 billion $5.75 billion 18.53
Anthem Competitors $52.70 billion $3.80 billion 18.04

Anthem has higher revenue and earnings than its rivals. Anthem 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.

Institutional and Insider Ownership

87.7% of Anthem shares are owned by institutional investors. Comparatively, 90.2% of shares of all “Managed Health Care” companies are owned by institutional investors. 0.4% of Anthem shares are owned by insiders. Comparatively, 2.4% of shares of all “Managed Health Care” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Anthem and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anthem 3.82% 13.06% 5.00%
Anthem Competitors 1.76% 10.54% 3.43%

Dividends

Anthem pays an annual dividend of $2.80 per share and has a dividend yield of 1.4%. Anthem pays out 26.5% 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 20.9% of their earnings in the form of a dividend. Anthem has increased its dividend for 2 consecutive years.

Summary

Anthem rivals beat Anthem on 8 of the 15 factors compared.

About Anthem

Anthem, Inc. is a health benefits company. The Company operates through three segments: Commercial and Specialty Business, Government Business and Other. It offers a spectrum of network-based managed care plans to large and small employer, individual, Medicaid and Medicare markets. Its managed care plans include preferred provider organizations; health maintenance organizations; point-of-service plans; indemnity plans and other hybrid plans, including consumer-driven health plans; and hospital only and limited benefit products. It also provides an array of managed care services to self-funded customers, including claims processing, underwriting, stop loss insurance, actuarial services, provider network access, medical cost management, disease management, wellness programs and other administrative services. It provides an array of specialty and other insurance products and services, such as dental, vision, life and disability insurance benefits and radiology benefit management.

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