Humana (NYSE: HUM) and Healthequity (NASDAQ:HQY) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.
This is a summary of recent ratings and price targets for Humana and Healthequity, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings & Valuation
This table compares Humana and Healthequity’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Humana||$53.77 billion||0.69||$2.45 billion||$16.68||16.07|
|Healthequity||$229.52 million||16.83||$47.36 million||$0.76||83.55|
Humana has higher revenue and earnings than Healthequity. Humana is trading at a lower price-to-earnings ratio than Healthequity, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
96.4% of Humana shares are owned by institutional investors. Comparatively, 99.4% of Healthequity shares are owned by institutional investors. 0.6% of Humana shares are owned by insiders. Comparatively, 19.0% of Healthequity shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Humana pays an annual dividend of $1.60 per share and has a dividend yield of 0.6%. Healthequity does not pay a dividend. Humana pays out 9.6% of its earnings in the form of a dividend. Humana has raised its dividend for 7 consecutive years.
This table compares Humana and Healthequity’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Humana has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Healthequity has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.
Healthequity beats Humana on 10 of the 17 factors compared between the two stocks.
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.
HealthEquity, Inc. provides a range of solutions for managing healthcare accounts (Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs)) for health plans, insurance companies and third-party administrators. The Company is engaged in technology-enabled services platforms that allow consumers to make healthcare saving and spending decisions. Its platform provides an ecosystem where consumers can access their tax-advantaged healthcare savings, compare treatment options and pricing, evaluate and pay healthcare bills, receive personalized benefit and clinical information, earn wellness incentives and make educated investment choices to help in their tax-advantaged healthcare savings. Its products and services include healthcare saving and spending platform, health savings accounts, investment advisory services, reimbursement arrangements and healthcare incentives. Its ecosystem primarily consists of HSA.
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