Head-To-Head Survey: Humana (NYSE:HUM) & Option Care Health (NASDAQ:OPCH)

Option Care Health (NASDAQ:OPCH) and Humana (NYSE:HUM) are both healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Profitability

This table compares Option Care Health and Humana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Option Care Health	3.68%	18.74%	7.25%
Humana	0.88%	11.20%	3.94%

Institutional and Insider Ownership

98.0% of Option Care Health shares are held by institutional investors. Comparatively, 92.4% of Humana shares are held by institutional investors. 1.7% of Option Care Health shares are held by insiders. Comparatively, 0.2% of Humana shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Option Care Health has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Humana has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Earnings & Valuation

This table compares Option Care Health and Humana”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Option Care Health	$5.65 billion	0.82	$207.59 million	$1.33	23.35
Humana	$145.68 billion	0.32	$1.19 billion	$10.57	36.68

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Option Care Health and Humana, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Option Care Health	0	13	3	0	2.19
Humana	1	13	16	0	2.50

Option Care Health currently has a consensus price target of $29.70, suggesting a potential downside of 4.35%. Humana has a consensus price target of $422.52, suggesting a potential upside of 8.99%. Given Humana’s stronger consensus rating and higher probable upside, analysts clearly believe Humana is more favorable than Option Care Health.

Summary

Humana beats Option Care Health on 8 of the 14 factors compared between the two stocks.

About Option Care Health

Option Care Health, Inc. offers home and alternate site infusion services in the United States. The company provides anti-infective therapies; home infusion services to treat heart failures; home parenteral nutrition and enteral nutrition support services for numerous acute and chronic conditions, such as stroke, cancer, and gastrointestinal diseases; immunoglobulin infusion therapies for the treatment of immune deficiencies; and treatments for chronic inflammatory disorders, including crohn’s disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, ulcerative colitis, and other chronic inflammatory disorders. It also offers treatments to manage the progression of neurological disorders, such as multiple sclerosis, duchenne muscular dystrophy, and other neurological disorder; infusion therapies for bleeding disorders, such as hemophilia and von Willebrand diseases; therapies for women with high-risk pregnancies; and other infusion therapies to treat various conditions, including pain management, chemotherapy, and respiratory medications, as well as nursing services. The company markets its services through patient referrals, including physicians, hospital discharge planners, hospital personnel, health maintenance organizations, and preferred provider organizations. Option Care Health, Inc. is headquartered in Bannockburn, Illinois.

About Humana

Humana Inc., together with its subsidiaries, provides medical and specialty insurance products in the United States. It operates through two segments, Insurance and CenterWell. The company offers medical and supplemental benefit plans to individuals. It has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits. In addition, the company provides commercial fully-insured medical and specialty health insurance benefits comprising dental, vision, life insurance, and other supplemental health benefits, as well as administrative services only products to individuals and employer groups; military services, such as TRICARE T2017 East Region contract; and engages in the operations of pharmacy benefit manager business. Further, it operates pharmacies and senior focused primary care centers; and offers home solutions services, such as home health, hospice, and other services to its health plan members, as well as to third parties. The company sells its products through employers and employees, independent brokers and agents, sales representatives, and digital insurance agencies. The company was formerly known as Extendicare Inc. and changed its name to Humana Inc. in April 1974. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.