Comparing NeueHealth (NYSE:NEUE) & The Cigna Group (NYSE:CI)

NeueHealth (NYSE:NEUE) and The Cigna Group (NYSE:CI) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Risk and Volatility

NeueHealth has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, The Cigna Group has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Institutional and Insider Ownership

63.9% of NeueHealth shares are held by institutional investors. Comparatively, 87.0% of The Cigna Group shares are held by institutional investors. 64.3% of NeueHealth shares are held by insiders. Comparatively, 0.7% of The Cigna Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for NeueHealth and The Cigna Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeueHealth	0	1	0	0	2.00
The Cigna Group	0	2	10	1	2.92

NeueHealth presently has a consensus target price of $8.00, indicating a potential upside of 30.08%. The Cigna Group has a consensus target price of $362.14, indicating a potential upside of 2.69%. Given NeueHealth’s higher possible upside, analysts plainly believe NeueHealth is more favorable than The Cigna Group.

Valuation and Earnings

This table compares NeueHealth and The Cigna Group’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
The Cigna Group	$195.27 billion	0.53	$5.16 billion	$17.39	20.28

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 NeueHealth and The Cigna Group’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%
The Cigna Group	2.64%	13.59%	4.12%

Summary

The Cigna Group beats NeueHealth on 12 of the 15 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 The Cigna Group

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.