Analyzing Centene (CNC) & Molina Healthcare (MOH)
Centene (NYSE: CNC) and Molina Healthcare (NYSE:MOH) are both mid-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.
Insider & Institutional Ownership
92.3% of Centene shares are held by institutional investors. Comparatively, 96.2% of Molina Healthcare shares are held by institutional investors. 3.0% of Centene shares are held by insiders. Comparatively, 6.2% of Molina Healthcare shares are held 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.
Risk & Volatility
Centene has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Molina Healthcare has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.
Earnings & Valuation
This table compares Centene and Molina Healthcare’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Centene||$40.61 billion||0.43||$562.00 million||$4.84||20.84|
|Molina Healthcare||$17.71 billion||0.24||$52.00 million||($6.07)||-12.20|
Centene has higher revenue and earnings than Molina Healthcare. Molina Healthcare is trading at a lower price-to-earnings ratio than Centene, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Centene and Molina Healthcare, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Centene presently has a consensus price target of $98.88, indicating a potential downside of 1.97%. Molina Healthcare has a consensus price target of $64.71, indicating a potential downside of 12.64%. Given Centene’s stronger consensus rating and higher probable upside, equities analysts clearly believe Centene is more favorable than Molina Healthcare.
This table compares Centene and Molina Healthcare’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Centene beats Molina Healthcare on 9 of the 14 factors compared between the two stocks.
Centene Corporation is a healthcare company. The Company provides a portfolio of services to government sponsored healthcare programs, focusing on under-insured and uninsured individuals. The Company operates through two segments: Managed Care and Specialty Services. The Company’s Managed Care segment provides health plan coverage to individuals, through government subsidized programs, including Medicaid, the State Children’s Health Insurance Program (CHIP), Long Term Care, Foster Care, dual-eligible individuals (Duals) and the Supplemental Security Income Program, also known as the Aged, Blind or Disabled Program (ABD), Medicare, and Health Insurance Marketplace. Its Specialty Services segment consists of its specialty companies offering a range of healthcare services and products to state programs, correctional facilities, healthcare organizations, employer groups and other commercial organizations, as well as to its own subsidiaries.
About Molina Healthcare
Molina Healthcare, Inc. offers Medicaid-related solutions for low-income families and individuals, and assists government agencies in their administration of the Medicaid program. The Company operates through three segments: Health Plans, Molina Medicaid Solutions and Other, which includes its Pathways Health and Community Support LLC (Pathways) business. It arranges healthcare services for persons served by Medicaid, Medicare, the Children’s Health Insurance Program (CHIP) and the Marketplace, and products to assist government agencies in their administration of the Medicaid program. As of December 31, 2016, the Company’s Health Plans segment consisted of health plans in 12 states and the Commonwealth of Puerto Rico, and its direct delivery business. The Molina Medicaid Solutions segment provides support to state government agencies in the administration of their Medicaid programs, including business processing, information technology development, and administrative services.
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