Piper Sandler has initiated coverage on Cigna Corporation CI, a diversified managed care and healthcare delivery organization specializing in commercial insurance markets and pharmacy services.
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Fundamentally, the case for strong buy healthcare stocks really sells itself. First off, let's discuss the underlying sector.
Cigna (CI) remains well-poised for growth on the back of improved pharmacy revenues in its Evernorth unit. Solid cash-generating abilities also enable it to tactically deploy capital.
The Cigna Group (NYSE:CI ) Goldman Sachs 45th Annual Global Healthcare Conference June 11, 2024 10:00 AM ET Company Participants Brian Evanko - CFO Conference Call Participants Nathan Rich - Goldman Sachs Nathan Rich Great. Good morning, everyone.
Cigna Group's dividend growth potential and strong financial performance make it worth considering for long-term investors. The company's revenue for the quarter grew by 23.3% year over year, with strong growth in its Evernorth Health Services segment. Management's outlook projects a 6% to 9% estimated growth rate for the company, with potential for increased market share and higher revenues.
Health insurance companies in the medical sector have not fared well in 2024. Medicare Advantage (MA) plans were a bountiful source of income until the second half of 2023.
Cigna's (CI) Express Scripts collaborates with CPESN USA in a bid to enhance care delivery for hypertension and diabetes patients.
The Cigna Group (NYSE:CI – Get Free Report) and NeueHealth (NYSE:NEUE – Get Free Report) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends. Earnings and Valuation This table compares The Cigna Group and NeueHealth’s gross revenue, earnings per share and valuation. Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio The Cigna Group $195.27 billion 0.49 $5.16 billion $12.18 27.81 NeueHealth $1.16 billion 0.04 -$1.15 billion ($130.73) -0.05 The Cigna Group has higher revenue and earnings than NeueHealth. NeueHealth is trading at a lower price-to-earnings ratio than The Cigna Group, indicating that it is currently the more affordable of the two stocks. Profitability This table compares The Cigna Group and NeueHealth’s net margins, return on equity and return on assets. Net Margins Return on Equity Return on Assets The Cigna Group 1.76% 17.24% 5.09% NeueHealth -89.78% -5.62% 2.57% Institutional & Insider Ownership 87.0% of The Cigna Group shares are owned by institutional investors. Comparatively, 63.9% of NeueHealth shares are owned by institutional investors. 0.6% of The Cigna Group shares are owned by company insiders. Comparatively, 64.3% of NeueHealth shares are owned by company 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. Risk and Volatility The Cigna Group has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, NeueHealth has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Analyst Ratings This is a summary of current ratings and target prices for The Cigna Group and NeueHealth, as reported by MarketBeat. Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score The Cigna Group 0 2 10 1 2.92 NeueHealth 0 1 0 0 2.00 The Cigna Group currently has a consensus price target of $366.14, indicating a potential upside of 8.10%. NeueHealth has a consensus price target of $8.00, indicating a potential upside of 33.56%. Given NeueHealth’s higher probable upside, analysts clearly believe NeueHealth is more favorable than The Cigna Group. Summary The Cigna Group beats NeueHealth on 12 of the 15 factors compared between the two stocks. About The Cigna Group (Get Free Report) 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 NeueHealth (Get Free Report) 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.