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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Aetna and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aetna 0 7 12 0 2.63
Aetna Competitors 79 886 1445 23 2.58

Aetna presently has a consensus price target of $167.56, suggesting a potential downside of 1.45%. As a group, “Managed Health Care” companies have a potential downside of 2.99%. Given Aetna’s stronger consensus rating and higher probable upside, analysts plainly believe Aetna is more favorable than its rivals.

Institutional and Insider Ownership

89.5% of Aetna shares are owned by institutional investors. Comparatively, 90.3% of shares of all “Managed Health Care” companies are owned by institutional investors. 0.9% of Aetna shares are owned by company insiders. Comparatively, 2.4% of shares of all “Managed Health Care” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Aetna has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Aetna’s rivals have a beta of 0.77, suggesting that their average stock price is 23% less volatile than the S&P 500.

Earnings and Valuation

This table compares Aetna and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Aetna $62.20 billion $6.06 billion 31.49
Aetna Competitors $52.70 billion $3.80 billion 16.97

Aetna has higher revenue and earnings than its rivals. Aetna 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Aetna 2.93% 21.84% 5.80%
Aetna Competitors 1.85% 11.10% 3.61%

Dividends

Aetna pays an annual dividend of $2.00 per share and has a dividend yield of 1.2%. Aetna pays out 37.0% 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 20.3% of their earnings in the form of a dividend.

Summary

Aetna beats its rivals on 9 of the 15 factors compared.

About Aetna

Aetna Inc. is a diversified healthcare benefits company. The Company operates through three segments: Health Care, Group Insurance and Large Case Pensions. It offers a range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, medical management capabilities, Medicaid healthcare management services, Medicare Advantage and Medicare Supplement plans, workers’ compensation administrative services and health information technology (HIT) products and services. The Health Care segment consists of medical, pharmacy benefit management services, dental, behavioral health and vision plans offered on both an Insured basis and an employer-funded basis, and emerging businesses products and services. The Group Insurance segment includes group life insurance and group disability products. Its products are offered on an Insured basis.

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