Critical Review: Healthways (TVTY) vs. The Competition

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

Profitability

This table compares Healthways and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Healthways 11.45% 30.23% 11.10%
Healthways Competitors 4.56% 4.29% 4.73%

Volatility & Risk

Healthways has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, Healthways’ competitors have a beta of 1.58, meaning that their average share price is 58% more volatile than the S&P 500.

Earnings & Valuation

This table compares Healthways and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Healthways $501.00 million -$129.11 million 23.75
Healthways Competitors $1.06 billion -$22.56 million 694.90

Healthways’ competitors have higher revenue and earnings than Healthways. Healthways 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.

Insider & Institutional Ownership

62.8% of shares of all “Hospitals, Clinics & Primary Care Services” companies are owned by institutional investors. 8.4% of Healthways 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Healthways 0 1 5 0 2.83
Healthways Competitors 57 325 507 9 2.52

Healthways presently has a consensus target price of $45.83, suggesting a potential upside of 30.39%. As a group, “Hospitals, Clinics & Primary Care Services” companies have a potential upside of 29.39%. Given Healthways’ stronger consensus rating and higher probable upside, equities analysts plainly believe Healthways is more favorable than its competitors.

Summary

Healthways competitors beat Healthways on 7 of the 13 factors compared.

Healthways Company Profile

Tivity Health, Inc., formerly Healthways, Inc., is focused targeted population health for those aged 50 and older. The Company offers three programs: SilverSneakers senior fitness, Prime fitness and WholeHealth Living. The SilverSneakers senior fitness program is offered to members of Medicare Advantage, Medicare Supplement, and Group Retiree plans. The Company also offers Prime fitness, a fitness facility access program, through commercial health plans, employers and insurance exchanges. Its national network of fitness centers delivers both SilverSneakers and Prime fitness. As of December 31, 2016, the Company’s fitness networks encompassed approximately 16,000 participating locations and more than 1,000 alternative locations that provide classes outside of traditional fitness centers. As of December 31, 2016, the Company’s WholeHealth Living network included over 88,000 complementary, alternative, and physical medicine practitioners to serve individuals through health plans.

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