Comparing Anthem (ANTX) and Its Rivals

Anthem (NASDAQ:ANTX) is one of 226 publicly-traded companies in the “Pharmaceutical preparations” industry, but how does it compare to its competitors? We will compare Anthem to related companies based on the strength of its risk, dividends, analyst recommendations, earnings, institutional ownership, profitability and valuation.

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	N/A	-55.04%	-49.13%
Anthem Competitors	-4,803.12%	-250.26%	-48.16%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Anthem and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anthem	1	0	1	0	2.00
Anthem Competitors	2228	2462	4375	69	2.25

Anthem presently has a consensus price target of $2.00, suggesting a potential downside of 57.26%. As a group, “Pharmaceutical preparations” companies have a potential upside of 122.42%. Given Anthem’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Anthem has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

90.5% of Anthem shares are held by institutional investors. Comparatively, 32.5% of shares of all “Pharmaceutical preparations” companies are held by institutional investors. 24.5% of Anthem shares are held by insiders. Comparatively, 14.7% of shares of all “Pharmaceutical preparations” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Anthem	N/A	-$35.17 million	-4.03
Anthem Competitors	$335.90 million	-$26.83 million	-4.46

Anthem’s competitors have higher revenue and earnings than Anthem. 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.

Volatility & Risk

Anthem has a beta of -0.96, meaning that its stock price is 196% less volatile than the S&P 500. Comparatively, Anthem’s competitors have a beta of 12.15, meaning that their average stock price is 1,115% more volatile than the S&P 500.

Summary

Anthem competitors beat Anthem on 7 of the 13 factors compared.

Anthem Company Profile

Anthem, Inc., through its subsidiaries, operates as a health benefits company in the United States. It operates through three segments: Commercial & Specialty Business, Government Business, and Other. The company offers a spectrum of network-based managed care health benefit plans to large and small group, individual, Medicaid, and Medicare markets. Its managed care plans include preferred provider organizations; health maintenance organizations; point-of-service plans; traditional indemnity plans and other hybrid plans, such as consumer-driven health plans; and hospital only and limited benefit products. The company also provides a range 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. In addition, it offers an array of specialty and other insurance products and services, such as dental, vision, life and disability insurance benefits, radiology benefit management, and analytics-driven personal health care guidance; and Medicare administrative services. Further, the company provides services to the federal government in connection with the Federal Employee Program; and operates as a licensee of the Blue Cross and Blue Shield Association. As of December 31, 2017, it served 40.2 million medical members through its affiliated health plans. The company was formerly known as WellPoint, Inc. and changed its name to Anthem, Inc. in December 2014. Anthem, Inc. was founded in 1944 and is headquartered in Indianapolis, Indiana.