Humana (NYSE: HUM) is one of 15 public companies in the “Managed Health Care” industry, but how does it compare to its rivals? We will compare Humana to similar companies based on the strength of its analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Volatility & Risk

Humana has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Humana’s rivals have a beta of 0.62, indicating that their average share price is 38% less volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Humana $54.38 billion $614.00 million 20.95
Humana Competitors $50.73 billion $1.52 billion 13.45

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.

Institutional and Insider Ownership

95.8% of Humana shares are owned by institutional investors. Comparatively, 90.3% of shares of all “Managed Health Care” companies are owned by institutional investors. 0.8% of Humana 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

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 1.74% 10.90% 3.51%

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 20.2% of their earnings in the form of a dividend. Humana has raised its dividend for 6 consecutive years.

Analyst Ratings

This is a summary of current recommendations for Humana and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Humana 0 9 11 0 2.55
Humana Competitors 81 927 1468 23 2.57

Humana presently has a consensus target price of $252.89, indicating a potential downside of 1.48%. As a group, “Managed Health Care” companies have a potential downside of 4.23%. Given Humana’s higher possible upside, equities research analysts plainly believe Humana is more favorable than its rivals.

Summary

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

About Humana

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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