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

Insider & Institutional Ownership

88.2% of CIGNA shares are owned by institutional investors. Comparatively, 90.3% of shares of all “Managed Health Care” companies are owned by institutional investors. 1.3% of CIGNA shares are owned by insiders. Comparatively, 2.5% 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.

Risk and Volatility

CIGNA has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, CIGNA’s rivals have a beta of 0.76, indicating that their average stock price is 24% less volatile than the S&P 500.

Dividends

CIGNA pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. CIGNA pays out 0.5% 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 20.7% of their earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
CIGNA 7.85% 22.67% 5.29%
CIGNA Competitors 1.86% 10.65% 3.45%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CIGNA 0 2 12 0 2.86
CIGNA Competitors 79 880 1442 23 2.58

CIGNA presently has a consensus target price of $192.00, suggesting a potential downside of 2.89%. As a group, “Managed Health Care” companies have a potential downside of 2.08%. Given CIGNA’s rivals higher possible upside, analysts plainly believe CIGNA has less favorable growth aspects than its rivals.

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
CIGNA $40.53 billion $4.21 billion 22.78
CIGNA Competitors $52.70 billion $3.80 billion 18.10

CIGNA’s rivals have higher revenue, but lower earnings than CIGNA. CIGNA 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.

Summary

CIGNA beats its rivals on 8 of the 15 factors compared.

About CIGNA

Cigna Corporation (Cigna), together with its subsidiaries, is a health services company. The Company offers medical, dental, disability, life and accident insurance and related products and services. The Company’s segments include Global Health Care, Global Supplemental Benefits, Group Disability and Life, and Other Operations and Corporate. Its Global Health Care segment aggregates the commercial and Government operating segments. Its commercial operating segment encompasses the United States commercial and certain international healthcare businesses serving employers and their employees, other groups, and individuals. Its Global Supplemental Benefits segment offers supplemental health, life and accident insurance products in selected international markets and in the United States. Its Group Disability and Life segment provides group long-term and short-term disability insurance, group life insurance, accident and specialty insurance and related services.

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