Financial Comparison: Humana (HUM) and Quorum Health (QHC)

Humana (NYSE: HUM) and Quorum Health (NYSE:QHC) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Humana 4.55% 16.13% 5.49%
Quorum Health -5.51% -34.01% -2.58%

Volatility and Risk

Humana has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Quorum Health has a beta of 3.6, meaning that its stock price is 260% more volatile than the S&P 500.

Dividends

Humana pays an annual dividend of $1.60 per share and has a dividend yield of 0.6%. Quorum Health does not pay a dividend. Humana pays out 9.6% of its earnings in the form of a dividend. Humana has increased its dividend for 7 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Humana and Quorum Health, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Humana 0 4 14 0 2.78
Quorum Health 0 4 0 0 2.00

Humana currently has a consensus price target of $270.29, indicating a potential upside of 1.72%. Quorum Health has a consensus price target of $3.88, indicating a potential downside of 45.65%. Given Humana’s stronger consensus rating and higher possible upside, equities analysts plainly believe Humana is more favorable than Quorum Health.

Insider and Institutional Ownership

96.4% of Humana shares are held by institutional investors. Comparatively, 86.9% of Quorum Health shares are held by institutional investors. 0.6% of Humana shares are held by insiders. Comparatively, 4.7% of Quorum Health shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Humana and Quorum Health’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Humana $53.77 billion 0.68 $2.45 billion $16.68 15.93
Quorum Health $2.07 billion 0.10 -$114.19 million ($4.06) -1.76

Humana has higher revenue and earnings than Quorum Health. Quorum Health 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 Quorum Health on 14 of the 17 factors compared between the two stocks.

Humana Company Profile

Humana Inc. is a health and well-being company. The Company’s segments include Retail, Group and Specialty, Healthcare Services and Individual Commercial. The Retail segment consists of Medicare benefits, as well as individual commercial fully insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products. The Group and Specialty segment consists of employer group commercial fully insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health. The Healthcare Services segment includes services offered to its health plan members, as well as to third parties, including pharmacy solutions, provider services, home-based services and clinical programs, as well as services and capabilities to manage population health. The Individual Commercial segment includes Individual Commercial products marketed under the HumanaOne brand.

Quorum Health Company Profile

Quorum Health Corporation is an operator and manager of general acute care hospitals and outpatient services in the United States. The Company operates in two segments: Hospital operations, which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services, and hospital management advisory and consulting services, which includes Quorum Health Resources, LLC (QHR). It operates QHR, which is a hospital management advisory and consulting services that provides services to non-affiliated general acute care hospitals. Its hospitals and its affiliated businesses offer services, such as general acute care, emergency room, general and specialty surgery and rehabilitation services.

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