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

Institutional and 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, 10.8% of shares of all “Hospitals, Clinics & Primary Care Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices 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 58 326 510 9 2.52

Premier presently 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 21.42%. Given Premier’s stronger consensus rating and higher possible upside, analysts clearly believe Premier is more favorable than its competitors.

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%

Valuation and Earnings

This table compares Premier and its competitors gross revenue, earnings per share (EPS) 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 749.58

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.

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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