Gartner (IT) & Premier (PINC) Financial Review

Gartner (NYSE: IT) and Premier (NASDAQ:PINC) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

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This is a summary of current ratings for Gartner and Premier, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gartner 0 2 5 1 2.88
Premier 0 5 8 0 2.62

Gartner presently has a consensus target price of $138.63, suggesting a potential upside of 19.21%. Premier has a consensus target price of $37.25, suggesting a potential upside of 19.16%. Given Gartner’s stronger consensus rating and higher possible upside, equities analysts plainly believe Gartner is more favorable than Premier.

Profitability

This table compares Gartner and Premier’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gartner 0.10% 42.47% 4.83%
Premier 14.14% -19.94% 10.66%

Risk and Volatility

Gartner has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Premier has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Valuation and Earnings

This table compares Gartner and Premier’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gartner $3.31 billion 3.19 $3.27 million $3.31 35.13
Premier $1.45 billion 2.92 $113.42 million $1.61 19.42

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

Insider & Institutional Ownership

96.8% of Gartner shares are owned by institutional investors. Comparatively, 42.9% of Premier shares are owned by institutional investors. 4.3% of Gartner shares are owned by insiders. Comparatively, 17.5% of Premier shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Gartner beats Premier on 10 of the 15 factors compared between the two stocks.

Gartner Company Profile

Gartner, Inc. operates as a research and advisory company. It operates through four segments: Research, Consulting, Events, and Talent Assessment & Other. The Research segment offers objective insights and advice on the priorities of various leaders in a range of functional areas of the enterprise through research and other reports, briefings, proprietary tools, access to our analysts, peer networking services, and membership programs that enable clients to make better decisions; and practice and talent management research insights in various business functions, such as human resources, sales, legal, and finance. This segment delivers its research, primarily through a subscription-based digital media service. The Consulting segment offers customized solutions to client needs through on-site and day-to-day support, as well as proprietary tools for measuring and improving IT performance. This segment provides solutions to CIOs, IT executives, and other professionals who are responsible for IT applications, enterprise architecture, go-to-market strategies, infrastructure and operations, program and portfolio management, and sourcing and vendor relationships; consulting services to professionals; and actionable solutions for IT cost optimization, technology modernization, and IT sourcing optimization initiatives. The Events segment offers business professionals in an organization the opportunity to learn, share, and network various events. The Talent Assessment & Other segment helps organizations to assess, engage, manage, and improve talent through knowledge and skills assessments, training programs, workshops, and survey and questionnaire services. The company has operations in the United States, Canada, Europe, the Middle East, Africa, and internationally. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.

Premier Company Profile

Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States. The company operates through two segments, Supply Chain Services and Performance Services. The Supply Chain Services segment offers its members with access to a range of products and services, including medical and surgical products, pharmaceuticals, laboratory supplies, capital equipment, information technology, facilities and construction, and food and nutritional products, as well as purchased services, such as clinical engineering and document shredding services and software-as-a-service informatics products. This segment also engages in the Integrated Pharmacy business, which provides traditional pharmacy dispensing and integrated pharmacy services; direct sourcing business; and provision of ASCEND Collaborative service for members to receive group purchasing programs, tiers, and prices, as well as managed services. The Performance Services segment offers PremierConnect for members to address existing cost and quality imperatives, help them manage a value-based care reimbursement model and support their regulatory reporting framework; and performance improvement collaborative, advisory, and government and insurance management services. This segment provides various PremierConnect domains comprising PremierConnect Quality & Regulatory domain for identifying and targeting quality improvement areas; PremierConnect Clinical Surveillance & Safety domain to enhance patient safety; PremierConnect Supply Chain & ERP domain for lowering supply chain costs; PremierConnect Operations domain, which optimizes labor management with integrated financial reporting and budgeting; and PremierConnect Enterprise Analytics, which integrates member's custom data into a hosted and integrated data warehouse and analytics platform. The company is headquartered in Charlotte, North Carolina.

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