Analyzing Premier (PINC) and The Competition

Premier (NASDAQ: PINC) is one of 15 public companies in the “Hospitals, Clinics & Primary Care Services” industry, but how does it contrast to its competitors? We will compare Premier to similar businesses based on the strength of its dividends, analyst recommendations, risk, profitability, earnings, institutional ownership and valuation.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Premier $1.45 billion $113.42 million -11.80
Premier Competitors $1.06 billion -$22.56 million 726.79

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.

Volatility and Risk

Premier has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Premier’s competitors have a beta of 1.58, suggesting that their average share price is 58% more volatile than the S&P 500.

Institutional & Insider Ownership

38.3% of Premier shares are owned by institutional investors. Comparatively, 69.5% 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, endowments and large money managers believe a company will outperform the market over the long term.

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 4.56% 4.29% 4.73%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Premier 1 1 8 0 2.70
Premier Competitors 57 326 509 9 2.52

Premier presently has a consensus price target of $38.86, indicating a potential upside of 33.90%. As a group, “Hospitals, Clinics & Primary Care Services” companies have a potential upside of 24.24%. Given Premier’s stronger consensus rating and higher possible upside, analysts plainly 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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