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

Institutional & Insider Ownership

38.3% of Premier shares are held by institutional investors. Comparatively, 69.6% of shares of all “Hospitals, Clinics & Primary Care Services” companies are held by institutional investors. 17.5% of Premier shares are held by insiders. Comparatively, 10.4% of shares of all “Hospitals, Clinics & Primary Care Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Premier $1.45 billion $113.42 million -6.96
Premier Competitors $1.06 billion -$22.56 million 738.31

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

Volatility and Risk

Premier has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Premier’s rivals have a beta of 1.47, meaning that their average share price is 47% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Premier and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Premier 1 1 7 0 2.67
Premier Competitors 57 325 509 9 2.52

Premier currently has a consensus price target of $38.86, suggesting a potential upside of 33.21%. As a group, “Hospitals, Clinics & Primary Care Services” companies have a potential upside of 22.41%. Given Premier’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Premier is more favorable than its rivals.

Profitability

This table compares Premier and its rivals’ 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 3.52% 3.52% 4.31%

Summary

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

About Premier

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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