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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Premier and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Premier 1 1 7 0 2.67
Premier Competitors 58 326 509 9 2.52

Premier currently has a consensus price target of $38.86, indicating a potential upside of 33.21%. As a group, “Hospitals, Clinics & Primary Care Services” companies have a potential upside of 22.62%. Given Premier’s stronger consensus rating and higher probable upside, equities analysts clearly believe Premier is more favorable than its competitors.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Premier $1.45 billion $113.42 million -11.86
Premier Competitors $1.06 billion -$22.56 million 739.69

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.

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 3.52% 3.52% 4.31%

Institutional & Insider Ownership

38.3% of Premier shares are owned by institutional investors. Comparatively, 69.6% of shares of all “Hospitals, Clinics & Primary Care Services” companies are owned by institutional investors. 17.5% of Premier shares are owned by company insiders. Comparatively, 10.4% of shares of all “Hospitals, Clinics & Primary Care Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

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

Summary

Premier beats its competitors 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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