Premier (NASDAQ: PINC) is one of 16 public companies in the “Hospitals, Clinics & Primary Care Services” industry, but how does it compare to its competitors? We will compare Premier to similar companies based on the strength of its risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Premier 17.99% -18.31% 10.21%
Premier Competitors 4.65% 5.74% 5.12%

Earnings & Valuation

This table compares Premier and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Premier $1.45 billion $113.42 million -6.67
Premier Competitors $1.06 billion -$22.56 million 421.42

Premier has higher revenue and earnings than its competitors. Premier is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Premier has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Premier’s competitors have a beta of 1.45, meaning that their average stock price is 45% more volatile than the S&P 500.

Insider and Institutional Ownership

38.2% of Premier shares are owned by institutional investors. Comparatively, 64.6% of shares of all “Hospitals, Clinics & Primary Care Services” companies are owned by institutional investors. 17.5% of Premier shares are owned by insiders. Comparatively, 10.4% of shares of all “Hospitals, Clinics & Primary Care Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for Premier and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Premier 1 1 7 0 2.67
Premier Competitors 57 321 502 9 2.52

Premier presently has a consensus target price of $39.33, indicating a potential upside of 40.78%. As a group, “Hospitals, Clinics & Primary Care Services” companies have a potential upside of 10.76%. Given Premier’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Premier is more favorable than its competitors.

Summary

Premier beats its competitors on 8 of the 13 factors compared.

Premier Company Profile

Premier, Inc. is a healthcare improvement company. The Company is uniting an alliance of approximately 3,900 United States hospitals and health systems and approximately 150,000 other providers and organizations to transform healthcare. The Company operates healthcare group purchasing organizations and also provides integrated data and analytics, supply chain solutions, advisory services, performance improvement collaborative and other services. The Company plays a role in the healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide.

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