WellCare Health Plans (NYSE: WCG) is one of 15 public companies in the “Managed Health Care” industry, but how does it compare to its rivals? We will compare WellCare Health Plans to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, institutional ownership, valuation and earnings.

Insider and Institutional Ownership

98.4% of WellCare Health Plans shares are owned by institutional investors. Comparatively, 90.3% of shares of all “Managed Health Care” companies are owned by institutional investors. 0.5% of WellCare Health Plans shares are owned by company insiders. Comparatively, 2.4% of shares of all “Managed Health Care” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares WellCare Health Plans and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
WellCare Health Plans $14.24 billion $242.10 million 25.91
WellCare Health Plans Competitors $50.73 billion $1.52 billion 13.59

WellCare Health Plans’ rivals have higher revenue and earnings than WellCare Health Plans. WellCare Health Plans 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.

Volatility & Risk

WellCare Health Plans has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, WellCare Health Plans’ rivals have a beta of 0.62, suggesting that their average stock price is 38% less volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WellCare Health Plans 0 10 7 0 2.41
WellCare Health Plans Competitors 81 927 1468 23 2.57

WellCare Health Plans currently has a consensus target price of $188.20, suggesting a potential downside of 8.86%. As a group, “Managed Health Care” companies have a potential downside of 2.41%. Given WellCare Health Plans’ rivals stronger consensus rating and higher possible upside, analysts clearly believe WellCare Health Plans has less favorable growth aspects than its rivals.

Profitability

This table compares WellCare Health Plans and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WellCare Health Plans 2.21% 19.42% 5.17%
WellCare Health Plans Competitors 1.74% 10.90% 3.51%

Summary

WellCare Health Plans rivals beat WellCare Health Plans on 7 of the 13 factors compared.

About WellCare Health Plans

WellCare Health Plans, Inc. is a managed care company. The Company focuses on government-sponsored managed care services, primarily through Medicaid, Medicare Advantage (MA) and Medicare Prescription Drug Plans (PDPs), to families, children, seniors and individuals with medical needs. The Company operates through three segments: Medicaid Health Plans, Medicare Health Plans and Medicare PDPs. As of December 31, 2016, it served approximately 3.9 million members in 50 states and the District of Columbia. As of December 31, 2016, it operated Medicaid health plans in Arizona, Florida, Georgia, Hawaii, Illinois, Kentucky, Missouri, New Jersey, New York and South Carolina. As of December 31, 2016, it offered MA coordinated care plans (CCPs) in certain counties in Arizona, Arkansas, California, Connecticut, Florida, Georgia, Hawaii, Illinois, Kentucky, Louisiana, Mississippi, New Jersey, New York, South Carolina, Tennessee and Texas.

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