TeamHealth Holdings (NYSE: TMH) and Molina Healthcare (NYSE:MOH) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a summary of current recommendations for TeamHealth Holdings and Molina Healthcare, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TeamHealth Holdings 0 9 1 0 2.10
Molina Healthcare 3 5 4 0 2.08

TeamHealth Holdings presently has a consensus price target of $42.29, suggesting a potential downside of 2.79%. Molina Healthcare has a consensus price target of $61.92, suggesting a potential downside of 3.63%. Given TeamHealth Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe TeamHealth Holdings is more favorable than Molina Healthcare.

Valuation & Earnings

This table compares TeamHealth Holdings and Molina Healthcare’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TeamHealth Holdings N/A N/A N/A $0.61 71.31
Molina Healthcare $18.51 billion 0.20 $106.00 million ($3.61) -17.80

Molina Healthcare has higher revenue and earnings than TeamHealth Holdings. Molina Healthcare is trading at a lower price-to-earnings ratio than TeamHealth Holdings, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TeamHealth Holdings and Molina Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TeamHealth Holdings 0.92% 5.98% 0.99%
Molina Healthcare -1.07% 16.10% 3.35%

Insider & Institutional Ownership

96.0% of Molina Healthcare shares are owned by institutional investors. 1.3% of TeamHealth Holdings shares are owned by company insiders. Comparatively, 6.2% of Molina Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

TeamHealth Holdings has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Molina Healthcare has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Summary

Molina Healthcare beats TeamHealth Holdings on 7 of the 11 factors compared between the two stocks.

TeamHealth Holdings Company Profile

Team Health Holdings, Inc. is a United States-based physician services company. The Company supplies outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States. It operates through four segments: Hospital Based Services, IPC Healthcare, Specialty Services and Other Services. The Hospital Based Services segment provides healthcare service programs to users of healthcare services on a fee for service, and on a cost plus or contract basis. The IPC Healthcare segment provides acute hospital medicine and post-acute provider service programs to users of healthcare services. The Specialty Services segment provides healthcare service programs to users of healthcare services in an outpatient setting or in a non-hospital-based environment. The Other Services segment is an aggregation of locums staffing, scribes, and billing, collection and consulting services that provides a range of other healthcare services.

Molina Healthcare Company Profile

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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