Babylon (BBLN) vs. Its Rivals Financial Analysis

Babylon (NYSE:BBLN – Get Rating) is one of 33 publicly-traded companies in the “Health services” industry, but how does it compare to its rivals? We will compare Babylon to related companies based on the strength of its dividends, profitability, risk, valuation, institutional ownership, earnings and analyst recommendations.

Risk and Volatility

Babylon has a beta of 2.57, suggesting that its stock price is 157% more volatile than the S&P 500. Comparatively, Babylon’s rivals have a beta of 1.54, suggesting that their average stock price is 54% more volatile than the S&P 500.

Valuation and Earnings

This table compares Babylon and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Babylon	$1.11 billion	-$221.45 million	-0.32
Babylon Competitors	$1.47 billion	-$91.84 million	-7.15

Babylon’s rivals have higher revenue and earnings than Babylon. Babylon is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations for Babylon and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Babylon	0	2	3	0	2.60
Babylon Competitors	8	146	292	0	2.64

Babylon presently has a consensus price target of $53.08, indicating a potential upside of 527.46%. As a group, “Health services” companies have a potential upside of 41.09%. Given Babylon’s higher probable upside, equities analysts plainly believe Babylon is more favorable than its rivals.

Insider and Institutional Ownership

49.7% of shares of all “Health services” companies are owned by institutional investors. 38.5% of Babylon shares are owned by insiders. Comparatively, 22.2% of shares of all “Health services” companies are owned 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.

Profitability

This table compares Babylon and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Babylon	-39.85%	-4,635.83%	-78.38%
Babylon Competitors	-118.87%	-448.95%	-28.54%

Summary

Babylon rivals beat Babylon on 7 of the 12 factors compared.

About Babylon

(Get Rating)

Babylon Holdings Limited operates as a digital healthcare company. It offers end-to-end care solution that facilities through its digital health suite, virtual care, in-person medical care, and post-care offerings. The company also provides Babylon Cloud services. It operates in the United Kingdom, the United States, the Asia Pacific, Canada, and internationally. The company was founded in 2013 and is headquartered in London, the United Kingdom.