Anthem (NYSE:ANTM) and Advanzeon Solutions (OTCMKTS:CHCR) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Volatility and Risk
Anthem has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Advanzeon Solutions has a beta of 2.2, suggesting that its stock price is 120% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Anthem and Advanzeon Solutions, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Anthem currently has a consensus target price of $293.40, indicating a potential upside of 2.21%. Given Anthem’s higher probable upside, equities analysts clearly believe Anthem is more favorable than Advanzeon Solutions.
Anthem pays an annual dividend of $3.00 per share and has a dividend yield of 1.0%. Advanzeon Solutions does not pay a dividend. Anthem pays out 24.9% of its earnings in the form of a dividend. Anthem has increased its dividend for 3 consecutive years.
This table compares Anthem and Advanzeon Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Anthem and Advanzeon Solutions’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Anthem||$90.04 billion||0.82||$3.84 billion||$12.04||23.84|
Anthem has higher revenue and earnings than Advanzeon Solutions.
Insider & Institutional Ownership
86.8% of Anthem shares are held by institutional investors. 0.3% of Anthem shares are held by company insiders. Comparatively, 16.5% of Advanzeon Solutions shares are held by company 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.
Anthem beats Advanzeon Solutions on 9 of the 12 factors compared between the two stocks.
Anthem Company Profile
Anthem, Inc., through its subsidiaries, operates as a health benefits company in the United States. It operates through three segments: Commercial & Specialty Business, Government Business, and Other. The company offers a spectrum of network-based managed care health benefit plans to large and small group, individual, Medicaid, and Medicare markets. Its managed care plans include preferred provider organizations; health maintenance organizations; point-of-service plans; traditional indemnity plans and other hybrid plans, such as consumer-driven health plans; and hospital only and limited benefit products. The company also provides a range of managed care services to self-funded customers, including claims processing, underwriting, stop loss insurance, actuarial services, provider network access, medical cost management, disease management, wellness programs, and other administrative services. In addition, it offers an array of specialty and other insurance products and services, such as dental, vision, life and disability insurance benefits, radiology benefit management, and analytics-driven personal health care guidance; and Medicare administrative services. Further, the company provides services to the federal government in connection with the Federal Employee Program; and operates as a licensee of the Blue Cross and Blue Shield Association. As of December 31, 2017, it served 40.2 million medical members through its affiliated health plans. The company was formerly known as WellPoint, Inc. and changed its name to Anthem, Inc. in December 2014. Anthem, Inc. was founded in 1944 and is headquartered in Indianapolis, Indiana.
Advanzeon Solutions Company Profile
Advanzeon Solutions, Inc. provides managed care services in the behavioral health, substance abuse, and pharmacy management fields in 47 states, the District of Columbia, and Puerto Rico. The company's managed care operations include administrative service agreements, fee-for-service agreements, and capitation contracts. Its programs and services comprise integrated behavioral healthcare and pharmacy management services; management of prescription drugs on an at-risk basis; analytic services for medical and pharmacy claims; case management/utilization review services; administrative services management; preferred provider network development; management and physician advisor reviews; and overall care management services. The company also offers outpatient programs, such as counseling or therapy; intermediate care programs, such as intensive outpatient programs and partial hospitalization services; inpatient programs; and crisis intervention services through psychiatrists, psychologists, therapists, other licensed healthcare professionals, psychiatric hospitals, general medical facilities, residential treatment centers, and other treatment facilities. It serves commercial, Medicare, Medicaid, and Children's Health Insurance Program health plans, as well as self-insured companies and unions. The company was formerly known as Comprehensive Care Corporation and changed its name to Advanzeon Solutions, Inc. in January 2014. Advanzeon Solutions, Inc. was founded in 1969 and is headquartered in Tampa, Florida.
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