Anthem (NYSE: ANTM) and Triple-S Management Corporation (NYSE:GTS) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Dividends
Anthem pays an annual dividend of $2.60 per share and has a dividend yield of 1.3%. Triple-S Management Corporation does not pay a dividend. Anthem pays out 24.6% of its earnings in the form of a dividend. Anthem has raised its dividend for 2 consecutive years.
Profitability
This table compares Anthem and Triple-S Management Corporation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Anthem | 3.24% | 12.93% | 4.96% |
| Triple-S Management Corporation | 0.63% | 0.19% | 0.07% |
Risk and Volatility
Anthem has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Triple-S Management Corporation has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations for Anthem and Triple-S Management Corporation, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Anthem | 0 | 9 | 8 | 0 | 2.47 |
| Triple-S Management Corporation | 0 | 1 | 0 | 0 | 2.00 |
Anthem currently has a consensus target price of $181.31, indicating a potential downside of 5.90%. Triple-S Management Corporation has a consensus target price of $20.00, indicating a potential downside of 18.37%. Given Anthem’s stronger consensus rating and higher possible upside, equities analysts clearly believe Anthem is more favorable than Triple-S Management Corporation.
Institutional & Insider Ownership
89.5% of Anthem shares are owned by institutional investors. Comparatively, 80.9% of Triple-S Management Corporation shares are owned by institutional investors. 0.4% of Anthem shares are owned by company insiders. Comparatively, 1.5% of Triple-S Management Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Anthem and Triple-S Management Corporation’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Anthem | $88.03 billion | 0.57 | $5.75 billion | $10.56 | 18.25 |
| Triple-S Management Corporation | $2.94 billion | 0.20 | $21.98 million | $0.76 | 32.24 |
Anthem has higher revenue and earnings than Triple-S Management Corporation. Anthem is trading at a lower price-to-earnings ratio than Triple-S Management Corporation, indicating that it is currently the more affordable of the two stocks.
Summary
Anthem beats Triple-S Management Corporation on 14 of the 17 factors compared between the two stocks.
Anthem Company Profile
Anthem, Inc. is a health benefits company. The Company operates through three segments: Commercial and Specialty Business, Government Business and Other. It offers a spectrum of network-based managed care plans to large and small employer, individual, Medicaid and Medicare markets. Its managed care plans include preferred provider organizations; health maintenance organizations; point-of-service plans; indemnity plans and other hybrid plans, including consumer-driven health plans; and hospital only and limited benefit products. It also provides an array of managed care services to self-funded customers, including claims processing, underwriting, stop loss insurance, actuarial services, provider network access, medical cost management, disease management, wellness programs and other administrative services. It provides an array of specialty and other insurance products and services, such as dental, vision, life and disability insurance benefits and radiology benefit management.
Triple-S Management Corporation Company Profile
Triple-S Management Corporation operates as a managed care company. The Company offers a range of managed care and related products in the commercial, Medicaid and Medicare markets. The Company’s segments include Managed Care, Life Insurance, and Property and Casualty Insurance. The Managed Care segment is engaged in the sale of managed care products to the Commercial, Medicare and Medicaid market sectors. The Life Insurance segment offers life and accident and health insurance coverage, and annuity products. The premiums for this segment are mainly subscribed through an internal sales force and a network of independent brokers and agents. The insurance products of Property and Casualty Insurance segment includes commercial package, commercial auto, and personal package. The premiums for this segment are originated through a network of independent insurance agents and brokers.
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