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

Analyst Recommendations

This is a summary of recent ratings for Universal American and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal American 0 2 0 0 2.00
Universal American Competitors 79 873 1435 22 2.58

Universal American presently has a consensus price target of $10.00, suggesting a potential upside of 0.30%. As a group, “Managed Health Care” companies have a potential downside of 0.20%. Given Universal American’s higher possible upside, equities analysts clearly believe Universal American is more favorable than its peers.

Risk & Volatility

Universal American has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, Universal American’s peers have a beta of 0.76, meaning that their average share price is 24% less volatile than the S&P 500.

Valuation & Earnings

This table compares Universal American and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Universal American N/A N/A -11.59
Universal American Competitors $52.70 billion $3.80 billion 18.04

Universal American’s peers have higher revenue and earnings than Universal American. Universal American 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 Universal American and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Universal American -5.12% -24.95% -8.23%
Universal American Competitors 1.76% 10.54% 3.43%

Insider & Institutional Ownership

85.7% of Universal American shares are owned by institutional investors. Comparatively, 90.2% of shares of all “Managed Health Care” companies are owned by institutional investors. 7.7% of Universal American 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Universal American peers beat Universal American on 8 of the 11 factors compared.

About Universal American

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.

Receive News & Ratings for Universal American Co. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Universal American Co. and related companies with MarketBeat.com's FREE daily email newsletter.