Comparing AMERIGROUP (AGP) and Its Competitors

AMERIGROUP (NYSE: AGP) is one of 15 public companies in the “Hospitals, Clinics & Primary Care Services” industry, but how does it weigh in compared to its competitors? We will compare AMERIGROUP to similar businesses based on the strength of its analyst recommendations, profitability, institutional ownership, valuation, earnings, dividends and risk.

Institutional & Insider Ownership

69.6% of shares of all “Hospitals, Clinics & Primary Care Services” companies are held by institutional investors. 10.4% of shares of all “Hospitals, Clinics & Primary Care Services” companies are held 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.

Valuation & Earnings

This table compares AMERIGROUP and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AMERIGROUP N/A N/A 35.82
AMERIGROUP Competitors $1.06 billion -$22.56 million 734.25

AMERIGROUP’s competitors have higher revenue, but lower earnings than AMERIGROUP. AMERIGROUP is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for AMERIGROUP and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AMERIGROUP 0 0 0 0 N/A
AMERIGROUP Competitors 57 326 509 9 2.52

As a group, “Hospitals, Clinics & Primary Care Services” companies have a potential upside of 23.60%. Given AMERIGROUP’s competitors higher probable upside, analysts clearly believe AMERIGROUP has less favorable growth aspects than its competitors.

Profitability

This table compares AMERIGROUP and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AMERIGROUP N/A N/A N/A
AMERIGROUP Competitors 3.52% 3.52% 4.31%

Risk and Volatility

AMERIGROUP has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, AMERIGROUP’s competitors have a beta of 1.47, suggesting that their average stock price is 47% more volatile than the S&P 500.

Summary

AMERIGROUP competitors beat AMERIGROUP on 8 of the 8 factors compared.

AMERIGROUP Company Profile

AMERIGROUP Corporation is a multi-state managed healthcare company focused on serving people who receive healthcare benefits through publicly funded healthcare programs, including Medicaid, Children’s Health Insurance Program (CHIP), Medicaid expansion programs and Medicare Advantage. The Company offers a continuum of care management, including disease management, pharmacy integration, centralized telephonic case management, in-person case management within healthcare facilities, and home visit case management for some of its members. As of December 31, 2011, the Company provided a number of healthcare products to approximately 2,024,000 members. Effective February 1, 2012, it provides managed care services in Louisiana. On May 1, 2012, it acquired Health Plus. In November 2012, the Company sold its Virginia health plan to Inova Health System Foundation. In December 2012, WellPoint Inc acquired the Company.

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