Universal American (NYSE: UAM) and Triple-S Management Corporation (NYSE:GTS) are both healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Risk & Volatility

Universal American has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, Triple-S Management Corporation has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Universal American and Triple-S Management Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal American 0 3 0 0 2.00
Triple-S Management Corporation 0 1 0 0 2.00

Universal American presently has a consensus target price of $10.00, indicating a potential upside of 0.30%. Triple-S Management Corporation has a consensus target price of $20.00, indicating a potential downside of 18.17%. Given Universal American’s higher possible upside, equities research analysts clearly believe Universal American is more favorable than Triple-S Management Corporation.

Earnings & Valuation

This table compares Universal American and Triple-S Management Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Universal American N/A N/A N/A ($0.86) -11.59
Triple-S Management Corporation $2.94 billion 0.20 $21.98 million $0.76 32.16

Triple-S Management Corporation has higher revenue and earnings than Universal American. Universal American is trading at a lower price-to-earnings ratio than Triple-S Management Corporation, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

85.7% of Universal American shares are owned by institutional investors. Comparatively, 80.5% of Triple-S Management Corporation shares are owned by institutional investors. 7.7% of Universal American shares are owned by insiders. Comparatively, 1.5% of Triple-S Management Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Universal American and Triple-S Management Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Universal American -5.12% -24.95% -8.23%
Triple-S Management Corporation 0.63% 0.19% 0.07%

Summary

Triple-S Management Corporation beats Universal American on 5 of the 9 factors compared between the two stocks.

About Universal American

Universal American Corp. provides an array of health insurance and managed care products and services to people covered by Medicare. The Company’s segments include Medicare Advantage, Management Services Organization (MSO), and Corporate & Other. The Medicare Advantage segment contains the operations of its initiatives in managed care for seniors. It operated 16 Medicare Shared Saving Program Accountable Care Organizations (ACOs) and two Next Generation ACOs, which included approximately 5,200 participating providers with approximately 221,800 assigned Medicare fee-for-service beneficiaries, as of December 31, 2016. The MSO segment supports its physician partnerships in the development of healthcare models, such as ACOs, with a range of capabilities and resources, including technology, analytics, clinical care coordination, regulatory compliance and program administration. It has developed a primary care physician alignment strategy, which is branded as The Healthy Collaboration.

About Triple-S Management Corporation

Triple-S Management Corporation operates as a managed care company. The Company offers a range of managed care and related products in the commercial, Medicaid and Medicare markets. The Company’s segments include Managed Care, Life Insurance, and Property and Casualty Insurance. The Managed Care segment is engaged in the sale of managed care products to the Commercial, Medicare and Medicaid market sectors. The Life Insurance segment offers life and accident and health insurance coverage, and annuity products. The premiums for this segment are mainly subscribed through an internal sales force and a network of independent brokers and agents. The insurance products of Property and Casualty Insurance segment includes commercial package, commercial auto, and personal package. The premiums for this segment are originated through a network of independent insurance agents and brokers.

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