Humana (NYSE: HUM) 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 Humana to similar businesses based on the strength of its valuation, profitability, earnings, analyst recommendations, institutional ownership, dividends and risk.

Profitability

This table compares Humana and its rivals’ 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 1.69% 10.28% 3.36%

Risk & Volatility

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

Insider & Institutional Ownership

95.5% of Humana shares are held by institutional investors. Comparatively, 90.3% 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Humana and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Humana 0 8 12 0 2.60
Humana Competitors 79 879 1442 23 2.58

Humana currently has a consensus price target of $253.11, suggesting a potential downside of 2.26%. As a group, “Managed Health Care” companies have a potential downside of 4.00%. Given Humana’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Humana is more favorable than its rivals.

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Humana $53.87 billion $2.66 billion 21.14
Humana Competitors $52.70 billion $3.80 billion 18.44

Humana has higher revenue, but lower earnings than its rivals. Humana 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.

Dividends

Humana pays an annual dividend of $1.60 per share and has a dividend yield of 0.6%. 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.

Summary

Humana beats its rivals 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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