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

Institutional & Insider Ownership

38.2% of Premier shares are held by institutional investors. Comparatively, 62.7% of shares of all “Hospitals, Clinics & Primary Care Services” companies are held by institutional investors. 17.5% of Premier shares are held by insiders. Comparatively, 10.4% of shares of all “Hospitals, Clinics & Primary Care Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Premier and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Premier $1.45 billion $113.42 million -6.64
Premier Competitors $1.06 billion -$22.56 million 753.82

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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Premier and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Premier 1 1 8 0 2.70
Premier Competitors 57 322 505 9 2.52

Premier currently has a consensus target price of $38.86, suggesting a potential upside of 39.62%. As a group, “Hospitals, Clinics & Primary Care Services” companies have a potential upside of 18.01%. Given Premier’s stronger consensus rating and higher probable upside, equities analysts plainly believe Premier is more favorable than its rivals.

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 4.56% 4.29% 4.73%

Risk & Volatility

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

Summary

Premier beats its rivals on 8 of the 13 factors compared.

About Premier

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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