Anthem (NYSE: ANTM) is one of 15 publicly-traded companies in the “Managed Health Care” industry, but how does it contrast to its rivals? We will compare Anthem to related businesses based on the strength of its analyst recommendations, profitability, valuation, institutional ownership, risk, earnings and dividends.

Profitability

This table compares Anthem and its rivals’ 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 1.74% 10.90% 3.51%

Institutional and Insider 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 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, hedge funds and endowments believe a company is poised for long-term growth.

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 20.2% of their earnings in the form of a dividend. Anthem has increased its dividend for 2 consecutive years.

Earnings & Valuation

This table compares Anthem and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Anthem $84.86 billion $2.47 billion 19.15
Anthem Competitors $50.73 billion $1.52 billion 13.45

Anthem has higher revenue and earnings than its rivals. Anthem is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anthem 0 7 9 0 2.56
Anthem Competitors 81 927 1468 23 2.57

Anthem presently has a consensus price target of $197.64, suggesting a potential downside of 6.68%. As a group, “Managed Health Care” companies have a potential downside of 3.33%. Given Anthem’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Anthem has less favorable growth aspects than its rivals.

Risk & Volatility

Anthem has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Anthem’s rivals have a beta of 0.62, meaning that their average share price is 38% less volatile than the S&P 500.

Summary

Anthem beats its rivals on 8 of the 15 factors compared.

About Anthem

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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