Humana (NYSE: HUM) and Triple-S Management Corporation (NYSE:GTS) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitabiliy, analyst recommendations, dividends, institutional ownership and risk.
Risk and Volatility
Humana has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Triple-S Management Corporation has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.
Institutional and Insider Ownership
99.1% of Humana shares are owned by institutional investors. Comparatively, 81.9% of Triple-S Management Corporation shares are owned by institutional investors. 0.8% of Humana shares are owned by insiders. Comparatively, 1.5% of Triple-S Management Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Humana and Triple-S Management Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Triple-S Management Corporation||0||0||0||0||N/A|
Humana presently has a consensus price target of $234.89, suggesting a potential downside of 0.26%. Given Humana’s higher probable upside, equities analysts plainly believe Humana is more favorable than Triple-S Management Corporation.
Earnings and Valuation
This table compares Humana and Triple-S Management Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Humana||$54.34 billion||0.63||$2.27 billion||$9.85||23.91|
|Triple-S Management Corporation||$2.95 billion||0.13||$15.77 million||$0.40||39.00|
Humana has higher revenue and earnings than Triple-S Management Corporation. Humana is trading at a lower price-to-earnings ratio than Triple-S Management Corporation, indicating that it is currently the more affordable of the two stocks.
Humana pays an annual dividend of $1.60 per share and has a dividend yield of 0.7%. Triple-S Management Corporation does not pay a dividend. Humana pays out 16.2% of its earnings in the form of a dividend. Triple-S Management Corporation has increased its dividend for 6 consecutive years.
This table compares Humana and Triple-S Management Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Triple-S Management Corporation||0.33%||-0.44%||-0.17%|
Humana beats Triple-S Management Corporation on 12 of the 15 factors compared between the two stocks.
Humana Inc. is a health and well-being company. The Company’s segments include Retail, Group and Specialty, Healthcare Services and Individual Commercial. The Retail segment consists of Medicare benefits, as well as individual commercial fully insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products. The Group and Specialty segment consists of employer group commercial fully insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health. The Healthcare Services segment includes services offered to its health plan members, as well as to third parties, including pharmacy solutions, provider services, home-based services and clinical programs, as well as services and capabilities to manage population health. The Individual Commercial segment includes Individual Commercial products marketed under the HumanaOne brand.
About Triple-S Management Corporation
Triple-S Management Corporation operates as a managed care company. The Company offers a range of managed care and related products in the commercial, Medicaid and Medicare markets. The Company’s segments include Managed Care, Life Insurance, and Property and Casualty Insurance. The Managed Care segment is engaged in the sale of managed care products to the Commercial, Medicare and Medicaid market sectors. The Life Insurance segment offers life and accident and health insurance coverage, and annuity products. The premiums for this segment are mainly subscribed through an internal sales force and a network of independent brokers and agents. The insurance products of Property and Casualty Insurance segment includes commercial package, commercial auto, and personal package. The premiums for this segment are originated through a network of independent insurance agents and brokers.
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