Catamaran Corp (NASDAQ: SXCI) and Centene Corporation (NYSE:CNC) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Valuation & Earnings

This table compares Catamaran Corp and Centene Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Catamaran Corp N/A N/A N/A N/A N/A
Centene Corporation $43.65 billion 0.33 $2.19 billion $4.55 18.35

Centene Corporation has higher revenue and earnings than Catamaran Corp.

Insider and Institutional Ownership

93.1% of Centene Corporation shares are owned by institutional investors. 3.0% of Centene Corporation shares are owned 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.

Profitability

This table compares Catamaran Corp and Centene Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Catamaran Corp 1.66% 6.54% 4.25%
Centene Corporation 1.72% 14.62% 4.24%

Analyst Recommendations

This is a summary of recent ratings and price targets for Catamaran Corp and Centene Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Catamaran Corp 0 0 0 0 N/A
Centene Corporation 1 4 13 0 2.67

Centene Corporation has a consensus price target of $85.60, suggesting a potential upside of 2.53%. Given Centene Corporation’s higher probable upside, analysts clearly believe Centene Corporation is more favorable than Catamaran Corp.

Summary

Centene Corporation beats Catamaran Corp on 7 of the 8 factors compared between the two stocks.

Catamaran Corp Company Profile

Catamaran Corporation (Catamaran) is a provider of pharmacy benefit management (PBM) services and healthcare information technology (HCIT) solutions to the healthcare benefit management industry. The Company operates in two segments: PBM and HCIT. The Company offers PBM services, which are marketed under the Catamaran PBM brand, and is engaged in owning and operating a network of mail and specialty pharmacies. In addition, the Company is a national provider of drug benefits to its customers under the federal government’s Medicare Part D program. The Company’s HCIT product offerings include a range of software products for managing prescription drug programs and for drug prescribing and dispensing. The Company’s customers include organizations in the pharmaceutical supply chain, such as pharmacy benefit managers, managed care organizations, self-insured employer groups, unions, third-party healthcare plan administrators, and state and federal government entities.

Centene Corporation Company Profile

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.

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