Magellan Health (NASDAQ: MGLN) is one of 15 publicly-traded companies in the “Managed Health Care” industry, but how does it contrast to its rivals? We will compare Magellan Health to similar businesses based on the strength of its dividends, analyst recommendations, valuation, profitability, risk, earnings and institutional ownership.

Institutional and Insider Ownership

93.3% of Magellan Health shares are held by institutional investors. Comparatively, 90.3% of shares of all “Managed Health Care” companies are held by institutional investors. 3.6% of Magellan Health shares are held by insiders. Comparatively, 2.4% of shares of all “Managed Health Care” companies are held 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 Magellan Health and its rivals’ 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 1.74% 10.90% 3.51%

Earnings & Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Magellan Health $4.84 billion $77.87 million 22.53
Magellan Health Competitors $50.73 billion $1.52 billion 13.59

Magellan Health’s rivals have higher revenue and earnings than Magellan Health. Magellan Health 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.

Risk & Volatility

Magellan Health has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Magellan Health’s 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 and price targets for Magellan Health and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Magellan Health 1 0 3 0 2.50
Magellan Health Competitors 81 927 1468 23 2.57

Magellan Health currently has a consensus price target of $81.25, indicating a potential downside of 4.86%. As a group, “Managed Health Care” companies have a potential downside of 3.67%. Given Magellan Health’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Magellan Health has less favorable growth aspects than its rivals.

Summary

Magellan Health rivals beat Magellan Health on 8 of the 13 factors compared.

About Magellan Health

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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