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

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 20.7% of their earnings in the form of a dividend. Anthem has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

88.1% of Anthem shares are owned by institutional investors. Comparatively, 90.3% of shares of all “Managed Health Care” companies are owned by institutional investors. 0.4% of Anthem shares are owned by insiders. Comparatively, 2.5% of shares of all “Managed Health Care” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Anthem has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Anthem’s competitors have a beta of 0.76, suggesting that their average stock price is 24% less volatile than the S&P 500.

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 1.70% 10.28% 3.36%

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Anthem $88.03 billion $5.75 billion 18.92
Anthem Competitors $52.70 billion $3.80 billion 18.38

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.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anthem 0 8 9 0 2.53
Anthem Competitors 79 881 1443 23 2.58

Anthem currently has a consensus target price of $192.53, indicating a potential downside of 7.97%. As a group, “Managed Health Care” companies have a potential downside of 2.58%. Given Anthem’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Anthem has less favorable growth aspects than its competitors.

Summary

Anthem competitors beat Anthem on 9 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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