Anthem (ANTM) vs. Its Peers Financial Contrast

Anthem (NYSE: ANTM) is one of 13 publicly-traded companies in the “Managed Health Care” industry, but how does it compare to its peers? We will compare Anthem to related companies based on the strength of its earnings, dividends, analyst recommendations, valuation, profitability, institutional ownership and risk.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Anthem and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anthem 0 7 10 0 2.59
Anthem Competitors 81 932 1475 24 2.57

Anthem currently has a consensus target price of $199.50, indicating a potential downside of 9.33%. As a group, “Managed Health Care” companies have a potential upside of 0.02%. Given Anthem’s peers higher probable upside, analysts plainly believe Anthem has less favorable growth aspects than its peers.

Risk & Volatility

Anthem has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Anthem’s peers have a beta of 0.68, indicating that their average stock price is 32% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Anthem $84.86 billion $2.47 billion 19.89
Anthem Competitors $50.73 billion $1.52 billion 9.39

Anthem has higher revenue and earnings than its peers. Anthem 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.

Profitability

This table compares Anthem and its peers’ 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 1.83% 11.42% 3.50%

Institutional & Insider Ownership

87.5% 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 stock will outperform the market over the long term.

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 20.0% of their earnings in the form of a dividend. Anthem has increased its dividend for 2 consecutive years.

Summary

Anthem beats its peers 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.

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