Premier (NASDAQ: PINC) and ManTech International (NASDAQ:MANT) are both mid-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Profitability

This table compares Premier and ManTech International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Premier 14.14% -19.94% 10.66%
ManTech International 6.65% 4.96% 3.82%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Premier and ManTech International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Premier 0 6 8 0 2.57
ManTech International 3 2 3 0 2.00

Premier presently has a consensus target price of $37.05, indicating a potential upside of 10.75%. ManTech International has a consensus target price of $55.50, indicating a potential downside of 7.13%. Given Premier’s stronger consensus rating and higher probable upside, equities analysts plainly believe Premier is more favorable than ManTech International.

Valuation & Earnings

This table compares Premier and ManTech International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Premier $1.45 billion 3.12 $113.42 million $1.61 20.78
ManTech International $1.72 billion 1.37 $114.14 million $1.62 36.89

ManTech International has higher revenue and earnings than Premier. Premier is trading at a lower price-to-earnings ratio than ManTech International, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Premier has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, ManTech International has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Dividends

ManTech International pays an annual dividend of $0.50 per share and has a dividend yield of 0.8%. Premier does not pay a dividend. ManTech International pays out 30.9% of its earnings in the form of a dividend.

Insider & Institutional Ownership

43.1% of Premier shares are owned by institutional investors. Comparatively, 64.5% of ManTech International shares are owned by institutional investors. 17.5% of Premier shares are owned by insiders. Comparatively, 22.3% of ManTech International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

ManTech International beats Premier on 9 of the 16 factors compared between the two stocks.

Premier Company Profile

Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States. The company operates through two segments, Supply Chain Services and Performance Services. The Supply Chain Services segment offers its members with access to a range of products and services, including medical and surgical products, pharmaceuticals, laboratory supplies, capital equipment, information technology, facilities and construction, and food and nutritional products, as well as purchased services, such as clinical engineering and document shredding services and software-as-a-service informatics products. This segment also engages in the Integrated Pharmacy business, which provides traditional pharmacy dispensing and integrated pharmacy services; direct sourcing business; and provision of ASCEND Collaborative service for members to receive group purchasing programs, tiers, and prices, as well as managed services. The Performance Services segment offers PremierConnect for members to address existing cost and quality imperatives, help them manage a value-based care reimbursement model and support their regulatory reporting framework; and performance improvement collaborative, advisory, and government and insurance management services. This segment provides various PremierConnect domains comprising PremierConnect Quality & Regulatory domain for identifying and targeting quality improvement areas; PremierConnect Clinical Surveillance & Safety domain to enhance patient safety; PremierConnect Supply Chain & ERP domain for lowering supply chain costs; PremierConnect Operations domain, which optimizes labor management with integrated financial reporting and budgeting; and PremierConnect Enterprise Analytics, which integrates member's custom data into a hosted and integrated data warehouse and analytics platform. The company is headquartered in Charlotte, North Carolina.

ManTech International Company Profile

ManTech International Corporation provides technologies and solutions for mission-critical national security programs worldwide. It offers cyber solutions and services, including security operations, threat intelligence, incident response and forensics, boundary defense, security systems engineering, infrastructure security, and computer forensics and exploitation. The company also provides hardware and software to support the technology infrastructure for applications, including IT service management, help desk, data center consolidation, enterprise architecture, mobile computing and device management, network operations and infrastructure, virtualization/cloud computing and migration, network and database administration, enterprise systems development and management, infrastructure as a service, and data collection and analytics; and designs, develops, integrates, operates, and sustains software applications and systems. In addition, it offers professional and technical solutions, and support services; command-and-control infrastructure, intelligence, surveillance and reconnaissance platforms and sensors, and data services; and vulnerability assessment, insider threat protection, exposure analysis, secrecy architecture design, security policy development and implementation, lifecycle acquisition program security, anti-tamper, export compliance support, foreign disclosure, system security engineering, security awareness and training, security support services, and technical certification and accreditation services. Further, the company provides systems engineering services consisting of requirement analysis, development, and management; systems development and integration, enterprise architecture and concept of operations, and technical assistance; test and evaluation services; training services; and supply chain management and logistics services. ManTech International Corporation was founded in 1968 and is based in Fairfax, Virginia.

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