Critical Review: Molina Healthcare (MOH) and Coventry Health Care (CVH)
Molina Healthcare (NYSE: MOH) and Coventry Health Care (NYSE:CVH) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.
Insider and Institutional Ownership
96.2% of Molina Healthcare shares are held by institutional investors. 6.2% of Molina Healthcare shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Molina Healthcare and Coventry Health Care’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Coventry Health Care||N/A||N/A||N/A|
This is a breakdown of current recommendations for Molina Healthcare and Coventry Health Care, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Coventry Health Care||0||0||0||0||N/A|
Molina Healthcare currently has a consensus price target of $64.71, suggesting a potential downside of 13.84%.
Earnings and Valuation
This table compares Molina Healthcare and Coventry Health Care’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Molina Healthcare||$17.71 billion||0.24||$52.00 million||($5.27)||-14.25|
|Coventry Health Care||N/A||N/A||N/A||$3.29||N/A|
Molina Healthcare has higher revenue and earnings than Coventry Health Care. Molina Healthcare is trading at a lower price-to-earnings ratio than Coventry Health Care, indicating that it is currently the more affordable of the two stocks.
Molina Healthcare beats Coventry Health Care on 6 of the 8 factors compared between the two stocks.
About Molina Healthcare
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.
About Coventry Health Care
Coventry Health Care, Inc. (Coventry) is a diversified national managed healthcare company based in Bethesda, Maryland. Coventry operates health plans, insurance companies, network rental and workers’ compensation services companies. The Company operates in three segments: Health Plan and Medical Services, Specialized Managed Care, and Workers’ Compensation. On January 1, 2012 the Company completed its acquisition of Children’s Mercy’s Family Health Partners, a Medicaid health plan. In May 2013, Aetna Inc announced it has completed its acquisition of Coventry Health Care, Inc.
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