Humana (NYSE:HUM – Get Free Report) and NeueHealth (NYSE:NEUE – Get Free Report) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Profitability
This table compares Humana and NeueHealth’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Humana | 1.82% | 17.76% | 5.63% |
NeueHealth | -71.23% | N/A | -1.21% |
Earnings and Valuation
This table compares Humana and NeueHealth’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Humana | $109.24 billion | 0.33 | $2.49 billion | $16.06 | 18.88 |
NeueHealth | $1.16 billion | 0.04 | -$1.15 billion | ($151.20) | -0.04 |
Risk & Volatility
Humana has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, NeueHealth has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Humana and NeueHealth, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Humana | 0 | 10 | 9 | 0 | 2.47 |
NeueHealth | 0 | 1 | 0 | 0 | 2.00 |
Humana currently has a consensus target price of $424.50, indicating a potential upside of 40.03%. NeueHealth has a consensus target price of $8.00, indicating a potential upside of 27.19%. Given Humana’s stronger consensus rating and higher probable upside, analysts clearly believe Humana is more favorable than NeueHealth.
Institutional & Insider Ownership
92.4% of Humana shares are owned by institutional investors. Comparatively, 63.9% of NeueHealth shares are owned by institutional investors. 0.3% of Humana shares are owned by company insiders. Comparatively, 64.3% of NeueHealth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Humana beats NeueHealth on 12 of the 14 factors compared between the two stocks.
About Humana
Humana Inc., together with its subsidiaries, provides medical and specialty insurance products in the United States. It operates through two segments, Insurance and CenterWell. The company offers medical and supplemental benefit plans to individuals. It has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits. In addition, the company provides commercial fully-insured medical and specialty health insurance benefits comprising dental, vision, life insurance, and other supplemental health benefits, as well as administrative services only products to individuals and employer groups; military services, such as TRICARE T2017 East Region contract; and engages in the operations of pharmacy benefit manager business. Further, it operates pharmacies and senior focused primary care centers; and offers home solutions services, such as home health, hospice, and other services to its health plan members, as well as to third parties. The company sells its products through employers and employees, independent brokers and agents, sales representatives, and digital insurance agencies. The company was formerly known as Extendicare Inc. and changed its name to Humana Inc. in April 1974. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.
About NeueHealth
NeueHealth, Inc., a healthcare company, provides various healthcare services for health consumers, providers, and payors in the United States. It operates through two segments: NeueCare and NeueSolutions. The NeueCare segment delivers healthcare services to ACA marketplace, medicare, and medicaid through owned and affiliated clinics. It operates risk-bearing clinics under the Centrum Health, AssociatesMD, and Premier Medical Associates brand names. The company also offers integrated system care solution, such as embedded pharmacy, laboratory, radiology, and population health focused specialty services; and chronic care management, transitions of care, and referral management services. The NeueSolutions segment enables providers and medical groups to succeed in performance-based arrangements; and participates in the centers for healthcare access to medicare beneficiaries. 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 Doral, Florida.
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