Cigna Corporation (CI) and Its Competitors Critical Analysis
Cigna Corporation (NYSE: CI) is one of 14 publicly-traded companies in the “Managed Health Care” industry, but how does it contrast to its peers? We will compare Cigna Corporation to related companies based on the strength of its profitability, earnings, dividends, institutional ownership, analyst recommendations, valuation and risk.
Risk and Volatility
Cigna Corporation has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, Cigna Corporation’s peers have a beta of 0.76, suggesting that their average stock price is 24% less volatile than the S&P 500.
Valuation and Earnings
This table compares Cigna Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Cigna Corporation||$40.53 billion||$4.21 billion||22.05|
|Cigna Corporation Competitors||$52.70 billion||$3.80 billion||18.06|
Cigna Corporation’s peers have higher revenue, but lower earnings than Cigna Corporation. Cigna Corporation 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.
Cigna Corporation pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Cigna Corporation pays out 0.5% of its earnings in the form of a dividend. As a group, “Managed Health Care” companies pay a dividend yield of 0.9% and pay out 20.9% of their earnings in the form of a dividend.
Institutional and Insider Ownership
88.0% of Cigna Corporation shares are held by institutional investors. Comparatively, 90.2% of shares of all “Managed Health Care” companies are held by institutional investors. 1.3% of Cigna Corporation shares are held by company insiders. Comparatively, 2.4% of shares of all “Managed Health Care” companies 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.
This table compares Cigna Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cigna Corporation Competitors||1.72%||10.53%||3.42%|
This is a summary of current recommendations for Cigna Corporation and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cigna Corporation Competitors||79||873||1433||22||2.58|
Cigna Corporation presently has a consensus target price of $192.00, indicating a potential upside of 0.30%. As a group, “Managed Health Care” companies have a potential downside of 0.11%. Given Cigna Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Cigna Corporation is more favorable than its peers.
Cigna Corporation beats its peers on 9 of the 15 factors compared.
About Cigna Corporation
Cigna Corporation (Cigna), together with its subsidiaries, is a health services company. The Company offers medical, dental, disability, life and accident insurance and related products and services. The Company’s segments include Global Health Care, Global Supplemental Benefits, Group Disability and Life, and Other Operations and Corporate. Its Global Health Care segment aggregates the commercial and Government operating segments. Its commercial operating segment encompasses the United States commercial and certain international healthcare businesses serving employers and their employees, other groups, and individuals. Its Global Supplemental Benefits segment offers supplemental health, life and accident insurance products in selected international markets and in the United States. Its Group Disability and Life segment provides group long-term and short-term disability insurance, group life insurance, accident and specialty insurance and related services.
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