Contrasting Elevance Health (NYSE:ELV) and NeueHealth (NYSE:NEUE)

Elevance Health (NYSE:ELV) and NeueHealth (NYSE:NEUE) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Earnings & Valuation

This table compares Elevance Health and NeueHealth’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elevance Health	$171.34 billion	0.72	$5.99 billion	$25.17	21.12
NeueHealth	$1.16 billion	0.04	-$1.15 billion	($151.20)	-0.04

Elevance Health has higher revenue and earnings than NeueHealth. NeueHealth is trading at a lower price-to-earnings ratio than Elevance Health, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Elevance Health and NeueHealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elevance Health	3.49%	20.47%	7.19%
NeueHealth	-71.23%	N/A	-1.21%

Risk & Volatility

Elevance Health has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, NeueHealth has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Insider and Institutional Ownership

89.2% of Elevance Health shares are owned by institutional investors. Comparatively, 63.9% of NeueHealth shares are owned by institutional investors. 0.4% of Elevance Health shares are owned by company insiders. Comparatively, 64.3% of NeueHealth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Elevance Health and NeueHealth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elevance Health	0	1	12	0	2.92
NeueHealth	0	1	0	0	2.00

Elevance Health presently has a consensus target price of $584.50, indicating a potential upside of 9.95%. NeueHealth has a consensus target price of $8.00, indicating a potential upside of 37.46%. Given NeueHealth’s higher possible upside, analysts clearly believe NeueHealth is more favorable than Elevance Health.

Summary

Elevance Health beats NeueHealth on 11 of the 14 factors compared between the two stocks.

About Elevance Health

Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States. The company operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to program members; health products; an array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, life, disability, and supplemental health insurance benefits. The company operates in the pharmacy services business; and markets and offers pharmacy services, including pharmacy benefit management, as well as home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database, and member services. In addition, it provides healthcare-related services and capabilities, including utilization management, behavioral health, integrated care delivery, palliative care, payment integrity services, subrogation services, and health and wellness programs, as well as services related to data management, information technology, and business operations. Further, the company is involved in the National Government Services business. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brand names. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance Health, Inc. was incorporated in 2001 and is headquartered in Indianapolis, Indiana.

About NeueHealth

NeueHealth, Inc., a healthcare company, provides various healthcare services for health consumers, providers, and payors in the United States. It operates through two segments: NeueCare and NeueSolutions. The NeueCare segment delivers healthcare services to ACA marketplace, medicare, and medicaid through owned and affiliated clinics. It operates risk-bearing clinics under the Centrum Health, AssociatesMD, and Premier Medical Associates brand names. The company also offers integrated system care solution, such as embedded pharmacy, laboratory, radiology, and population health focused specialty services; and chronic care management, transitions of care, and referral management services. The NeueSolutions segment enables providers and medical groups to succeed in performance-based arrangements; and participates in the centers for healthcare access to medicare beneficiaries. The company was formerly known as Bright Health Group, Inc. and changed its name to NeueHealth, Inc. in January 2024. NeueHealth, Inc. was incorporated in 2015 and is headquartered in Doral, Florida.