Comparing NeueHealth (NYSE:NEUE) and Humana (NYSE:HUM)

NeueHealth (NYSE:NEUE) and Humana (NYSE:HUM) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Insider and Institutional Ownership

63.9% of NeueHealth shares are held by institutional investors. Comparatively, 92.4% of Humana shares are held by institutional investors. 64.3% of NeueHealth shares are held by company insiders. Comparatively, 0.3% of Humana shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares NeueHealth and Humana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeueHealth	-71.23%	N/A	-1.21%
Humana	2.34%	19.44%	6.07%

Analyst Recommendations

This is a summary of recent ratings and price targets for NeueHealth and Humana, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeueHealth	0	1	0	0	2.00
Humana	0	10	9	0	2.47

NeueHealth currently has a consensus price target of $8.00, indicating a potential upside of 26.78%. Humana has a consensus price target of $465.42, indicating a potential upside of 43.28%. Given Humana’s stronger consensus rating and higher possible upside, analysts clearly believe Humana is more favorable than NeueHealth.

Risk & Volatility

NeueHealth has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Humana has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.

Earnings and Valuation

This table compares NeueHealth and Humana’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeueHealth	$1.16 billion	0.04	-$1.15 billion	($151.20)	-0.04
Humana	$106.37 billion	0.37	$2.49 billion	$19.82	16.39

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

Summary

Humana beats NeueHealth on 12 of the 14 factors compared between the two stocks.

About NeueHealth

NeueHealth, Inc., a healthcare company, provides various healthcare services for health consumers, providers, and payors in the United States. It operates through two segments: NeueCare and NeueSolutions. The NeueCare segment delivers healthcare services to ACA marketplace, medicare, and medicaid through owned and affiliated clinics. It operates risk-bearing clinics under the Centrum Health, AssociatesMD, and Premier Medical Associates brand names. The company also offers integrated system care solution, such as embedded pharmacy, laboratory, radiology, and population health focused specialty services; and chronic care management, transitions of care, and referral management services. The NeueSolutions segment enables providers and medical groups to succeed in performance-based arrangements; and participates in the centers for healthcare access to medicare beneficiaries. The company was formerly known as Bright Health Group, Inc. and changed its name to NeueHealth, Inc. in January 2024. NeueHealth, Inc. was incorporated in 2015 and is headquartered in Doral, Florida.

About Humana

Humana Inc., together with its subsidiaries, provides medical and specialty insurance products in the United States. It operates through two segments, Insurance and CenterWell. The company offers medical and supplemental benefit plans to individuals. It has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits. In addition, the company provides commercial fully-insured medical and specialty health insurance benefits comprising dental, vision, life insurance, and other supplemental health benefits, as well as administrative services only products to individuals and employer groups; military services, such as TRICARE T2017 East Region contract; and engages in the operations of pharmacy benefit manager business. Further, it operates pharmacies and senior focused primary care centers; and offers home solutions services, such as home health, hospice, and other services to its health plan members, as well as to third parties. The company sells its products through employers and employees, independent brokers and agents, sales representatives, and digital insurance agencies. The company was formerly known as Extendicare Inc. and changed its name to Humana Inc. in April 1974. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.