Critical Contrast: NeueHealth (NEUE) and Its Peers

NeueHealth (NYSE:NEUE) is one of 14 publicly-traded companies in the “Hospital & medical service plans” industry, but how does it compare to its rivals? We will compare NeueHealth to related businesses based on the strength of its earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Institutional and Insider Ownership

63.9% of NeueHealth shares are held by institutional investors. Comparatively, 80.4% of shares of all “Hospital & medical service plans” companies are held by institutional investors. 64.3% of NeueHealth shares are held by insiders. Comparatively, 10.2% of shares of all “Hospital & medical service plans” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares NeueHealth and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeueHealth	-71.23%	N/A	-1.21%
NeueHealth Competitors	0.04%	-1.59%	-0.04%

Valuation & Earnings

This table compares NeueHealth and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NeueHealth	$1.16 billion	-$1.15 billion	-0.04
NeueHealth Competitors	$80.60 billion	$2.78 billion	8.68

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

Analyst Ratings

This is a summary of current ratings and target prices for NeueHealth and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeueHealth	0	1	0	0	2.00
NeueHealth Competitors	94	1116	2552	98	2.69

NeueHealth currently has a consensus price target of $8.00, indicating a potential upside of 35.36%. As a group, “Hospital & medical service plans” companies have a potential upside of 18.89%. Given NeueHealth’s higher probable upside, research analysts plainly believe NeueHealth is more favorable than its rivals.

Risk and Volatility

NeueHealth has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, NeueHealth’s rivals have a beta of 0.95, meaning that their average stock price is 5% less volatile than the S&P 500.

Summary

NeueHealth rivals beat NeueHealth on 10 of the 13 factors compared.

About NeueHealth

NeueHealth, Inc., a healthcare company, provides health insurance policies in the United States. It operates in two segments, Bright HealthCare and Consumer Care. The Consumer Care segment delivers virtual and in-person clinical care services contracts through primary care clinics. It operates managed and affiliated risk-bearing clinics within its integrated care delivery system, which included embedded pharmacy, laboratory, radiology, and population health focused specialty services. The Bright HealthCare segment offers medicare health plan products to consumers. The company was formerly known as Bright Health Group, Inc. and changed its name to NeueHealth, Inc. in January 2024. NeueHealth, Inc. was incorporated in 2015 and is headquartered in Minneapolis, Minnesota.