Analyzing Premier (PINC) & Its Peers

Premier (NASDAQ: PINC) is one of 15 public companies in the “Hospitals, Clinics & Primary Care Services” industry, but how does it contrast to its rivals? We will compare Premier to similar businesses based on the strength of its dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Risk & Volatility

Premier has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Premier’s rivals have a beta of 0.87, suggesting that their average stock price is 13% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Premier 17.99% -18.31% 10.21%
Premier Competitors 3.55% 3.42% 4.26%

Valuation and Earnings

This table compares Premier and its rivals gross 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 rivals. Premier 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.

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, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Premier and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Premier 1 1 7 0 2.67
Premier Competitors 59 327 512 9 2.52

Premier currently has a consensus target price of $38.86, indicating 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 probable upside, equities analysts clearly believe Premier is more favorable than its rivals.

Summary

Premier beats its rivals 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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