Humana (NYSE: HUM) is one of 14 publicly-traded companies in the “Managed Health Care” industry, but how does it contrast to its competitors? We will compare Humana to similar businesses based on the strength of its analyst recommendations, valuation, risk, earnings, dividends, institutional ownership and profitability.

Volatility & Risk

Humana has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Humana’s competitors have a beta of 0.76, meaning that their average share price is 24% less volatile than the S&P 500.

Profitability

This table compares Humana and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Humana 3.37% 15.85% 5.76%
Humana Competitors 1.76% 10.54% 3.43%

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Humana $53.87 billion $2.66 billion 20.07
Humana Competitors $52.70 billion $3.80 billion 18.06

Humana has higher revenue, but lower earnings than its competitors. Humana is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

95.1% of Humana shares are held by institutional investors. Comparatively, 90.2% of shares of all “Managed Health Care” companies are held by institutional investors. 0.8% of Humana shares are held by insiders. Comparatively, 2.4% of shares of all “Managed Health Care” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Humana pays an annual dividend of $1.60 per share and has a dividend yield of 0.7%. 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 0.9% and pay out 20.9% of their earnings in the form of a dividend. Humana has raised its dividend for 6 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations for Humana and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Humana 0 8 12 0 2.60
Humana Competitors 79 873 1433 22 2.58

Humana presently has a consensus target price of $253.11, indicating a potential upside of 2.97%. As a group, “Managed Health Care” companies have a potential downside of 0.40%. Given Humana’s stronger consensus rating and higher possible upside, research analysts clearly believe Humana is more favorable than its competitors.

Summary

Humana beats its competitors on 11 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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