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

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 1.71% 10.41% 3.30%

Insider & Institutional Ownership

85.7% of Universal American shares are owned by institutional investors. Comparatively, 90.3% 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, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

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

Analyst Ratings

This is a summary of recent recommendations 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 79 880 1442 23 2.58

Universal American presently has a consensus price target of $10.00, indicating a potential upside of 0.30%. As a group, “Managed Health Care” companies have a potential downside of 3.56%. Given Universal American’s higher probable upside, equities analysts plainly believe Universal American is more favorable than its peers.

Earnings and Valuation

This table compares Universal American and its peers gross revenue, earnings per share 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 18.36

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.

Summary

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

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.

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