Humana (HUM) and Its Rivals Head to Head Review

Humana (NYSE: HUM) is one of 14 publicly-traded companies in the “Managed Health Care” industry, but how does it weigh in compared to its peers? We will compare Humana to related companies based on the strength of its analyst recommendations, valuation, profitability, earnings, institutional ownership, dividends and risk.

Profitability

This table compares Humana and its peers’ net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Humana3.37%15.85%5.76%
Humana Competitors1.70%10.53%3.41%

Dividends

Humana pays an annual dividend of $1.60 per share and has a dividend yield of 0.7%. Humana pays out 13.1% of its earnings in the form of a dividend. As a group, “Managed Health Care” companies pay a dividend yield of 1.0% and pay out 21.2% of their earnings in the form of a dividend. Humana has increased its dividend for 6 consecutive years.

Institutional and Insider Ownership

95.1% of Humana shares are owned by institutional investors. Comparatively, 90.2% of shares of all “Managed Health Care” companies are owned by institutional investors. 0.8% of Humana shares are owned by company insiders. Comparatively, 2.5% of shares of all “Managed Health Care” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Humana and its peers gross revenue, earnings per share and valuation.

Gross RevenueEBITDAPrice/Earnings Ratio
Humana$53.87 billion$2.66 billion19.62
Humana Competitors$52.30 billion$3.74 billion17.61

Humana has higher revenue, but lower earnings than its peers. Humana is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Humana has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Humana’s peers have a beta of 0.76, suggesting that their average stock price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Humana and its peers, as reported by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Humana081102.58
Humana Competitors798601412222.58

Humana presently has a consensus target price of $250.50, suggesting a potential upside of 4.21%. As a group, “Managed Health Care” companies have a potential upside of 0.33%. Given Humana’s higher probable upside, research analysts clearly believe Humana is more favorable than its peers.

Summary

Humana beats its peers on 9 of the 15 factors compared.

About Humana

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.

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