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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Universal American and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal American 0 2 0 0 2.00
Universal American Competitors 79 885 1445 23 2.58

Universal American 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 2.91%. Given Universal American’s higher possible upside, equities analysts clearly believe Universal American is more favorable than its competitors.

Risk and Volatility

Universal American has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, Universal American’s competitors have a beta of 0.77, indicating that their average stock price is 23% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Universal American N/A N/A -11.59
Universal American Competitors $52.70 billion $3.80 billion 16.97

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

Profitability

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

Net Margins Return on Equity Return on Assets
Universal American -5.12% -24.95% -8.23%
Universal American Competitors 1.77% 10.69% 3.47%

Insider and Institutional Ownership

85.7% of Universal American shares are owned by institutional investors. Comparatively, 90.3% of shares of all “Managed Health Care” companies are owned by institutional investors. 7.7% of Universal American shares are owned by company insiders. Comparatively, 2.4% 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 is poised for long-term growth.

Summary

Universal American competitors beat Universal American on 8 of the 11 factors compared.

Universal American Company Profile

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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