Contrasting Anthem (ANTM) & The Competition

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

Analyst Recommendations

This is a summary of current ratings for Anthem and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anthem 0 7 10 0 2.59
Anthem Competitors 81 931 1473 24 2.57

Anthem presently has a consensus price target of $197.64, suggesting a potential downside of 9.45%. As a group, “Managed Health Care” companies have a potential downside of 0.66%. Given Anthem’s competitors higher possible upside, analysts clearly believe Anthem has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Anthem and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Anthem $84.86 billion $2.47 billion 19.74
Anthem Competitors $50.73 billion $1.52 billion 11.50

Anthem has higher revenue and earnings than its competitors. Anthem is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

88.9% of Anthem shares are owned by institutional investors. Comparatively, 90.7% of shares of all “Managed Health Care” companies are owned by institutional investors. 0.4% of Anthem shares are owned by company insiders. Comparatively, 2.6% of shares of all “Managed Health Care” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Anthem pays an annual dividend of $2.80 per share and has a dividend yield of 1.3%. Anthem pays out 25.3% 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 19.9% of their earnings in the form of a dividend. Anthem has raised its dividend for 2 consecutive years.

Profitability

This table compares Anthem and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anthem 3.35% 12.97% 4.97%
Anthem Competitors 1.81% 11.04% 3.55%

Volatility and Risk

Anthem has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Anthem’s competitors have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.

Summary

Anthem beats its competitors on 10 of the 15 factors compared.

Anthem Company Profile

Anthem, Inc. is a health benefits company. The Company operates through three segments: Commercial and Specialty Business, Government Business and Other. It offers a spectrum of network-based managed care plans to large and small employer, individual, Medicaid and Medicare markets. Its managed care plans include preferred provider organizations; health maintenance organizations; point-of-service plans; indemnity plans and other hybrid plans, including consumer-driven health plans; and hospital only and limited benefit products. It also provides an array of managed care services to self-funded customers, including claims processing, underwriting, stop loss insurance, actuarial services, provider network access, medical cost management, disease management, wellness programs and other administrative services. It provides an array of specialty and other insurance products and services, such as dental, vision, life and disability insurance benefits and radiology benefit management.

Receive News & Ratings for Anthem Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Anthem Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply