Premier (PINC) and Its Competitors Critical Comparison

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

Volatility and Risk

Premier has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Premier’s competitors have a beta of 1.58, indicating that their average stock price is 58% more volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Premier 1 1 8 0 2.70
Premier Competitors 57 325 507 9 2.52

Premier presently has a consensus price target of $38.86, suggesting a potential upside of 37.26%. As a group, “Hospitals, Clinics & Primary Care Services” companies have a potential upside of 29.94%. Given Premier’s stronger consensus rating and higher probable upside, research analysts plainly believe Premier is more favorable than its competitors.

Profitability

This table compares Premier and its competitors’ 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 4.56% 4.29% 4.73%

Valuation & Earnings

This table compares Premier and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Premier $1.45 billion $113.42 million -6.76
Premier Competitors $1.06 billion -$22.56 million 687.75

Premier has higher revenue and earnings than its competitors. Premier is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

37.4% of Premier shares are owned by institutional investors. Comparatively, 62.8% of shares of all “Hospitals, Clinics & Primary Care Services” companies are owned by institutional investors. 17.5% of Premier shares are owned by insiders. Comparatively, 10.8% of shares of all “Hospitals, Clinics & Primary Care Services” companies are owned by 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

Premier beats its competitors 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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