Cigna Corporation (NYSE: CI) is one of 14 public companies in the “Managed Health Care” industry, but how does it compare to its competitors? We will compare Cigna Corporation to related companies based on the strength of its institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Risk and Volatility

Cigna Corporation has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Cigna Corporation’s competitors have a beta of 0.76, suggesting that their average share price is 24% less volatile than the S&P 500.

Insider and Institutional Ownership

88.2% of Cigna Corporation shares are held by institutional investors. Comparatively, 90.3% of shares of all “Managed Health Care” companies are held by institutional investors. 1.3% of Cigna Corporation shares are held by company insiders. Comparatively, 2.5% of shares of all “Managed Health Care” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Cigna Corporation and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cigna Corporation $40.53 billion $4.21 billion 22.72
Cigna Corporation Competitors $52.70 billion $3.80 billion 18.38

Cigna Corporation’s competitors have higher revenue, but lower earnings than Cigna Corporation. Cigna Corporation 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Cigna Corporation and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cigna Corporation 0 2 12 0 2.86
Cigna Corporation Competitors 79 881 1443 23 2.58

Cigna Corporation presently has a consensus price target of $192.00, indicating a potential downside of 2.65%. As a group, “Managed Health Care” companies have a potential downside of 3.42%. Given Cigna Corporation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Cigna Corporation is more favorable than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
Cigna Corporation 5.55% 17.40% 4.04%
Cigna Corporation Competitors 1.70% 10.28% 3.36%

Dividends

Cigna Corporation pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Cigna Corporation 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.

Summary

Cigna Corporation beats its competitors on 9 of the 15 factors compared.

About Cigna Corporation

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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