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 rivals? We will compare Humana to similar companies based on the strength of its risk, profitability, institutional ownership, valuation, analyst recommendations, earnings and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Humana 3.37% 15.85% 5.76%
Humana Competitors 1.70% 10.53% 3.41%

Insider & Institutional Ownership

95.1% of Humana shares are held by institutional investors. Comparatively, 90.2% of shares of all “Managed Health Care” companies are held by institutional investors. 0.8% of Humana shares are held by insiders. Comparatively, 2.5% of shares of all “Managed Health Care” companies are held by 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.

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.

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Humana $53.87 billion $2.66 billion 19.36
Humana Competitors $52.30 billion $3.74 billion 17.28

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Humana and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Humana 0 8 12 0 2.60
Humana Competitors 79 871 1420 22 2.58

Humana currently has a consensus target price of $250.50, suggesting a potential upside of 5.62%. As a group, “Managed Health Care” companies have a potential upside of 3.36%. Given Humana’s stronger consensus rating and higher probable upside, equities analysts clearly believe Humana is more favorable than its rivals.

Risk & Volatility

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

Summary

Humana beats its rivals on 11 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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