NeueHealth (NYSE:NEUE – Get Free Report) and Elevance Health (NYSE:ELV – 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, analyst recommendations, profitability, earnings, valuation, risk and dividends.
Profitability
This table compares NeueHealth and Elevance Health’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% |
Elevance Health | 3.49% | 20.47% | 7.19% |
Institutional and Insider Ownership
63.9% of NeueHealth shares are owned by institutional investors. Comparatively, 89.2% of Elevance Health shares are owned by institutional investors. 64.3% of NeueHealth shares are owned by insiders. Comparatively, 0.3% of Elevance Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Analyst Recommendations
This is a breakdown of recent ratings and target prices for NeueHealth and Elevance Health, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
NeueHealth | 0 | 1 | 0 | 0 | 2.00 |
Elevance Health | 0 | 1 | 9 | 0 | 2.90 |
NeueHealth currently has a consensus target price of $8.00, indicating a potential upside of 36.99%. Elevance Health has a consensus target price of $569.00, indicating a potential upside of 11.79%. Given NeueHealth’s higher probable upside, research analysts plainly believe NeueHealth is more favorable than Elevance Health.
Valuation and Earnings
This table compares NeueHealth and Elevance Health’s revenue, earnings per share (EPS) 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 |
Elevance Health | $171.34 billion | 0.69 | $5.99 billion | $25.17 | 20.22 |
Elevance Health has higher revenue and earnings than NeueHealth. NeueHealth is trading at a lower price-to-earnings ratio than Elevance Health, indicating that it is currently the more affordable of the two stocks.
Summary
Elevance Health beats NeueHealth on 11 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 Elevance Health
Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States. The company operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to program members; health products; an array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, life, disability, and supplemental health insurance benefits. The company operates in the pharmacy services business; and markets and offers pharmacy services, including pharmacy benefit management, as well as home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database, and member services. In addition, it provides healthcare-related services and capabilities, including utilization management, behavioral health, integrated care delivery, palliative care, payment integrity services, subrogation services, and health and wellness programs, as well as services related to data management, information technology, and business operations. Further, the company is involved in the National Government Services business. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brand names. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance Health, Inc. was incorporated in 2001 and is headquartered in Indianapolis, Indiana.
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