Financial Analysis: Premier (PINC) & Its Rivals
Premier (NASDAQ: PINC) is one of 15 publicly-traded companies in the “Hospitals, Clinics & Primary Care Services” industry, but how does it compare to its peers? We will compare Premier to related businesses based on the strength of its institutional ownership, analyst recommendations, profitability, valuation, risk, dividends and earnings.
This table compares Premier and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
38.3% of Premier shares are owned by institutional investors. Comparatively, 69.6% of shares of all “Hospitals, Clinics & Primary Care Services” companies are owned by institutional investors. 17.5% of Premier shares are owned by company insiders. Comparatively, 10.8% of shares of all “Hospitals, Clinics & Primary Care Services” companies are owned by company 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.
This is a summary of current recommendations for Premier and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Premier currently has a consensus target price of $38.86, suggesting a potential upside of 33.48%. As a group, “Hospitals, Clinics & Primary Care Services” companies have a potential upside of 17.23%. Given Premier’s stronger consensus rating and higher possible upside, research analysts plainly believe Premier is more favorable than its peers.
Valuation & Earnings
This table compares Premier and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Premier||$1.45 billion||$113.42 million||-11.83|
|Premier Competitors||$1.06 billion||-$22.56 million||780.70|
Premier has higher revenue and earnings than its peers. Premier is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Risk & Volatility
Premier has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Premier’s peers have a beta of 0.87, indicating that their average share price is 13% less volatile than the S&P 500.
Premier beats its peers on 8 of the 13 factors compared.
Premier Company Profile
Premier, Inc. is a healthcare improvement company. The Company is uniting an alliance of approximately 3,900 United States hospitals and health systems and approximately 150,000 other providers and organizations to transform healthcare. The Company operates healthcare group purchasing organizations and also provides integrated data and analytics, supply chain solutions, advisory services, performance improvement collaborative and other services. The Company plays a role in the healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide.
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