GETINGE (OTCMKTS:GNGBY) vs. Elevance Health (NYSE:ELV) Critical Contrast

GETINGE (OTCMKTS:GNGBY) and Elevance Health (NYSE:ELV) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for GETINGE and Elevance Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GETINGE	0	1	0	0	2.00
Elevance Health	0	10	11	0	2.52

Elevance Health has a consensus price target of $408.33, indicating a potential upside of 17.29%. Given Elevance Health’s stronger consensus rating and higher possible upside, analysts clearly believe Elevance Health is more favorable than GETINGE.

Valuation and Earnings

This table compares GETINGE and Elevance Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GETINGE	$3.29 billion	N/A	$154.96 million	$0.53	42.62
Elevance Health	$177.01 billion	0.44	$5.98 billion	$23.50	14.81

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

Institutional and Insider Ownership

89.2% of Elevance Health shares are held by institutional investors. 0.3% of Elevance Health shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

GETINGE pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. Elevance Health pays an annual dividend of $6.84 per share and has a dividend yield of 2.0%. GETINGE pays out 52.8% of its earnings in the form of a dividend. Elevance Health pays out 29.1% 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. Elevance Health has raised its dividend for 14 consecutive years. Elevance Health is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

GETINGE has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Elevance Health has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Profitability

This table compares GETINGE and Elevance Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GETINGE	4.24%	10.46%	5.38%
Elevance Health	2.83%	17.59%	6.36%

Summary

Elevance Health beats GETINGE on 13 of the 16 factors compared between the two stocks.

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.

About Elevance Health

Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States. The company operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to program members; health products; an array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, life, disability, and supplemental health insurance benefits. The company operates in the pharmacy services business; and markets and offers pharmacy services, including pharmacy benefit management, as well as home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database, and member services. In addition, it provides healthcare-related services and capabilities, including utilization management, behavioral health, integrated care delivery, palliative care, payment integrity services, subrogation services, and health and wellness programs, as well as services related to data management, information technology, and business operations. Further, the company is involved in the National Government Services business. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brand names. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance Health, Inc. was incorporated in 2001 and is headquartered in Indianapolis, Indiana.