Critical Comparison: Magellan Health (MGLN) and Triple-S Management Corporation (GTS)
Magellan Health (NASDAQ: MGLN) and Triple-S Management Corporation (NYSE:GTS) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.
This is a summary of current ratings and price targets for Magellan Health and Triple-S Management Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Triple-S Management Corporation||0||1||0||0||2.00|
Magellan Health currently has a consensus price target of $80.25, indicating a potential upside of 2.03%. Triple-S Management Corporation has a consensus price target of $20.00, indicating a potential downside of 15.40%. Given Magellan Health’s stronger consensus rating and higher probable upside, research analysts plainly believe Magellan Health is more favorable than Triple-S Management Corporation.
Risk and Volatility
Magellan Health has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Triple-S Management Corporation has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.
Valuation & Earnings
This table compares Magellan Health and Triple-S Management Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Magellan Health||$5.28 billion||0.35||$242.58 million||$3.53||22.28|
|Triple-S Management Corporation||$2.94 billion||0.19||$21.98 million||$0.76||31.11|
Magellan Health has higher revenue and earnings than Triple-S Management Corporation. Magellan Health is trading at a lower price-to-earnings ratio than Triple-S Management Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Magellan Health and Triple-S Management Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Triple-S Management Corporation||0.63%||0.19%||0.07%|
Institutional & Insider Ownership
92.3% of Magellan Health shares are owned by institutional investors. Comparatively, 80.9% of Triple-S Management Corporation shares are owned by institutional investors. 3.6% of Magellan Health shares are owned by company insiders. Comparatively, 1.5% of Triple-S Management Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Magellan Health beats Triple-S Management Corporation on 13 of the 14 factors compared between the two stocks.
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).
Triple-S Management Corporation Company Profile
Triple-S Management Corporation operates as a managed care company. The Company offers a range of managed care and related products in the commercial, Medicaid and Medicare markets. The Company’s segments include Managed Care, Life Insurance, and Property and Casualty Insurance. The Managed Care segment is engaged in the sale of managed care products to the Commercial, Medicare and Medicaid market sectors. The Life Insurance segment offers life and accident and health insurance coverage, and annuity products. The premiums for this segment are mainly subscribed through an internal sales force and a network of independent brokers and agents. The insurance products of Property and Casualty Insurance segment includes commercial package, commercial auto, and personal package. The premiums for this segment are originated through a network of independent insurance agents and brokers.
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