Financial Review: Cigna Group (NYSE:CI) & Getinge (OTCMKTS:GNGBY)

Cigna Group (NYSE:CI) and Getinge (OTCMKTS:GNGBY) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Volatility and Risk

Cigna Group has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500. Comparatively, Getinge has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Profitability

This table compares Cigna Group and Getinge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cigna Group	2.27%	19.75%	5.34%
Getinge	8.20%	11.55%	6.15%

Dividends

Cigna Group pays an annual dividend of $6.24 per share and has a dividend yield of 2.1%. Getinge pays an annual dividend of $0.29 per share and has a dividend yield of 1.0%. Cigna Group pays out 25.8% of its earnings in the form of a dividend. Getinge pays out 26.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cigna Group has raised its dividend for 5 consecutive years. Cigna Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

87.0% of Cigna Group shares are held by institutional investors. 0.6% of Cigna Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Cigna Group and Getinge”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cigna Group	$274.90 billion	0.28	$5.96 billion	$24.17	12.21
Getinge	$3.57 billion	2.13	$230.87 million	$1.10	25.42

Cigna Group has higher revenue and earnings than Getinge. Cigna Group is trading at a lower price-to-earnings ratio than Getinge, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Cigna Group and Getinge, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cigna Group	0	8	14	0	2.64
Getinge	0	4	0	0	2.00

Cigna Group currently has a consensus target price of $336.40, suggesting a potential upside of 13.95%. Given Cigna Group’s stronger consensus rating and higher possible upside, analysts plainly believe Cigna Group is more favorable than Getinge.

Summary

Cigna Group beats Getinge on 12 of the 17 factors compared between the two stocks.

About 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.

About Getinge

Getinge AB (publ) provides products and solutions for operating rooms, intensive-care units, and sterilization departments. The company operates through Acute Care Therapies, Life Science, and Surgical Workflows segments. It offers extracorporeal membrane oxygenation, mechanical ventilation, mechanical circulatory support, advanced patient monitoring, ICU infrastructure equipment, patient flow management, and drainage solutions. The company also provides surgical perfusion, endoscopic vessel harvesting, intra-aortic balloon counterpulsation, and drainage solutions; and operating room infrastructure equipment, anesthesia, advanced patient monitoring, operating room management, and operating room integration solutions. In addition, it offers pre-cleaning, cleaning and disinfection, sterilization, consumables, endoscope reprocessing, and sterile supply management solutions; connected medical devices; bioreactor systems, DPTE systems, Getinge isolators, terminal sterilization products, and sterilizers; and vivarium, biohazardous materials handling solutions, labware cleaning and sterilization, upstream bioprocessing, and bioreactor preparation solutions. It offers its products through a network of sales companies, as well as through agents and distributors in the Americas, Europe, the Middle East, Africa, and the Asia and Pacific. Getinge AB (publ) was founded in 1904 and is headquartered in Gothenburg, Sweden.