Premier (NASDAQ: PINC) is one of 15 publicly-traded companies in the “Hospitals, Clinics & Primary Care Services” industry, but how does it compare to its peers? We will compare Premier to related businesses based on the strength of its earnings, valuation, dividends, institutional ownership, risk, analyst recommendations and profitability.

Institutional and Insider Ownership

38.3% of Premier shares are held by institutional investors. Comparatively, 69.6% of shares of all “Hospitals, Clinics & Primary Care Services” companies are held by institutional investors. 17.5% of Premier shares are held by insiders. Comparatively, 10.4% of shares of all “Hospitals, Clinics & Primary Care Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Premier has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Premier’s peers have a beta of 1.47, meaning that their average share price is 47% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Premier and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Premier 1 1 7 0 2.67
Premier Competitors 59 327 512 9 2.52

Premier presently has a consensus target price of $38.86, suggesting a potential upside of 31.50%. As a group, “Hospitals, Clinics & Primary Care Services” companies have a potential upside of 19.15%. Given Premier’s stronger consensus rating and higher probable upside, equities analysts clearly believe Premier is more favorable than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Premier 17.99% -18.31% 10.21%
Premier Competitors 3.55% 3.42% 4.26%

Valuation & Earnings

This table compares Premier and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Premier $1.45 billion $113.42 million -7.05
Premier Competitors $1.06 billion -$22.56 million 765.27

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

Summary

Premier beats its peers on 8 of the 13 factors compared.

Premier Company Profile

Premier, Inc. is a healthcare improvement company. The Company is uniting an alliance of approximately 3,900 United States hospitals and health systems and approximately 150,000 other providers and organizations to transform healthcare. The Company operates healthcare group purchasing organizations and also provides integrated data and analytics, supply chain solutions, advisory services, performance improvement collaborative and other services. The Company plays a role in the healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide.

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