Select Medical (NYSE:SEM) and Cigna Group (NYSE:CI) Head-To-Head Survey

Cigna Group (NYSE:CI) and Select Medical (NYSE:SEM) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Valuation & Earnings

This table compares Cigna Group and Select Medical”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cigna Group	$247.12 billion	0.30	$3.43 billion	$22.67	12.19
Select Medical	$5.19 billion	0.35	$214.04 million	$0.86	17.20

Cigna Group has higher revenue and earnings than Select Medical. Cigna Group is trading at a lower price-to-earnings ratio than Select Medical, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Cigna Group has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500. Comparatively, Select Medical has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Profitability

This table compares Cigna Group and Select Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cigna Group	2.29%	18.80%	5.01%
Select Medical	2.05%	7.41%	2.62%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Cigna Group and Select Medical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cigna Group	1	3	19	1	2.83
Select Medical	1	1	4	0	2.50

Cigna Group currently has a consensus price target of $331.83, suggesting a potential upside of 20.08%. Select Medical has a consensus price target of $17.80, suggesting a potential upside of 20.31%. Given Select Medical’s higher possible upside, analysts plainly believe Select Medical is more favorable than Cigna Group.

Insider & Institutional Ownership

87.0% of Cigna Group shares are owned by institutional investors. Comparatively, 89.5% of Select Medical shares are owned by institutional investors. 0.7% of Cigna Group shares are owned by insiders. Comparatively, 11.6% of Select Medical 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.

Dividends

Cigna Group pays an annual dividend of $6.04 per share and has a dividend yield of 2.2%. Select Medical pays an annual dividend of $0.25 per share and has a dividend yield of 1.7%. Cigna Group pays out 26.6% of its earnings in the form of a dividend. Select Medical pays out 29.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cigna Group has increased its dividend for 5 consecutive years. Cigna Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Cigna Group beats Select Medical on 12 of the 18 factors compared between the two stocks.

About Cigna Group

The Cigna Group, together with its subsidiaries, provides insurance and related products and services in the United States. Its Evernorth Health Services segment provides a range of coordinated and point solution health services, including pharmacy benefits, home delivery pharmacy, specialty pharmacy, distribution, and care delivery and management solutions to health plans, employers, government organizations, and health care providers. The company's Cigna Healthcare segment offers medical, pharmacy, behavioral health, dental, and other products and services for insured and self-insured customers; Medicare Advantage, Medicare Supplement, and Medicare Part D plans for seniors, as well as individual health insurance plans; and health care coverage in its international markets, as well as health care benefits for mobile individuals and employees of multinational organizations. In addition, it offers permanent insurance contracts sold to corporations to provide coverage on the lives of certain employees for financing employer-paid future benefit obligations. The company distributes its products and services through insurance brokers and consultants; directly to employers, unions and other groups, or individuals; and private and public exchanges. The company was formerly known as Cigna Corporation and changed its name to The Cigna Group in February 2023. The Cigna Group was founded in 1792 and is headquartered in Bloomfield, Connecticut.

About Select Medical

Select Medical Holdings Corporation, through its subsidiaries, operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States. It operates in four segments: Critical Illness Recovery Hospital, Rehabilitation Hospital, Outpatient Rehabilitation, and Concentra. The Critical Illness Recovery Hospital segment consists of hospitals that provide services for heart failure, infectious disease, respiratory failure and pulmonary disease, surgery requiring prolonged recovery, renal disease, neurological events, and trauma. The Rehabilitation Hospital segment offers therapy and rehabilitation treatments, including rehabilitative services for brain and spinal cord injuries, strokes, amputations, neurological disorders, orthopedic conditions, pediatric congenital or acquired disabilities, and cancer. The Outpatient Rehabilitation segment operates rehabilitation clinics that provide physical, occupational, and speech rehabilitation programs and services; and specialized programs, such as functional programs for work related injuries, hand therapy, post-concussion rehabilitation, pediatric and cancer rehabilitation, and athletic training services. The Concentra segment operates and provides occupational health centers, telemedicine platforms, onsite clinics, and contract services at employer worksites that deliver occupational health services, consumer health, physical therapy, and preventive care. Select Medical Holdings Corporation was founded in 1996 and is headquartered in Mechanicsburg, Pennsylvania.