Magellan Health (NASDAQ: MGLN) is one of 14 publicly-traded companies in the “Managed Health Care” industry, but how does it weigh in compared to its competitors? We will compare Magellan Health to related businesses based on the strength of its valuation, institutional ownership, analyst recommendations, risk, earnings, profitability and dividends.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Magellan Health and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Magellan Health 1 0 3 0 2.50
Magellan Health Competitors 70 834 1404 23 2.59

Magellan Health presently has a consensus price target of $81.25, suggesting a potential downside of 2.05%. As a group, “Managed Health Care” companies have a potential downside of 3.19%. Given Magellan Health’s higher possible upside, equities research analysts clearly believe Magellan Health is more favorable than its competitors.

Profitability

This table compares Magellan Health and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Magellan Health 1.68% 9.20% 4.21%
Magellan Health Competitors 1.70% 10.29% 3.37%

Risk & Volatility

Magellan Health has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Magellan Health’s competitors have a beta of 0.60, indicating that their average stock price is 40% less volatile than the S&P 500.

Insider and Institutional Ownership

93.3% of Magellan Health shares are owned by institutional investors. Comparatively, 89.9% of shares of all “Managed Health Care” companies are owned by institutional investors. 5.0% of Magellan Health shares are owned by company insiders. Comparatively, 2.8% of shares of all “Managed Health Care” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Magellan Health and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Magellan Health $4.84 billion $77.87 million 21.94
Magellan Health Competitors $54.78 billion $1.66 billion 12.47

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

Summary

Magellan Health competitors beat Magellan Health on 7 of the 13 factors compared.

Magellan Health Company Profile

Magellan Health, Inc. is engaged in the healthcare management business. The Company’s segments include Healthcare, Pharmacy Management and Corporate. It is focused on managing special populations, complete pharmacy benefits and other specialty areas of healthcare. Its Healthcare includes its management of behavioral healthcare services and employee assistance program (EAP) services, management of other specialty areas, including diagnostic imaging and musculoskeletal management, and the integrated management of physical, behavioral and pharmaceutical healthcare for special populations, delivered through Magellan Complete Care (MCC). Its Pharmacy Management segment consists of products and solutions that provide clinical and financial management of pharmaceuticals paid under medical and pharmacy benefit programs. Its Corporate segment consists primarily of operational support functions. It provides services to health plans and other managed care organizations (MCOs).

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