Universal American Corporation (NYSE:UAM) and The Competition Critical Analysis

Universal American Corporation (NYSE: UAM) is one of 12 publicly-traded companies in the “Managed Health Care” industry, but how does it compare to its rivals? We will compare Universal American Corporation to related businesses based on the strength of its earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Risk and Volatility

Universal American Corporation has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500. Comparatively, Universal American Corporation’s rivals have a beta of 0.76, meaning that their average stock price is 24% less volatile than the S&P 500.

Profitability

This table compares Universal American Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Universal American Corporation -5.12% -24.95% -8.23%
Universal American Corporation Competitors 1.84% 11.86% 3.43%

Earnings and Valuation

This table compares Universal American Corporation and its rivals gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Universal American Corporation N/A N/A -110.78
Universal American Corporation Competitors $50.73 billion $1.52 billion 6.82

Universal American Corporation’s rivals have higher revenue and earnings than Universal American Corporation. Universal American Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

85.7% of Universal American Corporation shares are held by institutional investors. Comparatively, 90.7% of shares of all “Managed Health Care” companies are held by institutional investors. 7.7% of Universal American Corporation shares are held by insiders. Comparatively, 2.4% of shares of all “Managed Health Care” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Universal American Corporation and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal American Corporation 0 2 0 0 2.00
Universal American Corporation Competitors 78 887 1408 23 2.57

Universal American Corporation currently has a consensus price target of $10.00, indicating a potential upside of 0.30%. As a group, “Managed Health Care” companies have a potential downside of 1.46%. Given Universal American Corporation’s higher probable upside, research analysts plainly believe Universal American Corporation is more favorable than its rivals.

Summary

Universal American Corporation rivals beat Universal American Corporation on 8 of the 11 factors compared.

About Universal American Corporation

Universal American Corp. provides an array of health insurance and managed care products and services to people covered by Medicare. The Company’s segments include Medicare Advantage, Management Services Organization (MSO), and Corporate & Other. The Medicare Advantage segment contains the operations of its initiatives in managed care for seniors. It operated 16 Medicare Shared Saving Program Accountable Care Organizations (ACOs) and two Next Generation ACOs, which included approximately 5,200 participating providers with approximately 221,800 assigned Medicare fee-for-service beneficiaries, as of December 31, 2016. The MSO segment supports its physician partnerships in the development of healthcare models, such as ACOs, with a range of capabilities and resources, including technology, analytics, clinical care coordination, regulatory compliance and program administration. It has developed a primary care physician alignment strategy, which is branded as The Healthy Collaboration.

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