WellCare Health Plans (NYSE: WCG) and Catamaran Corp (NASDAQ:CTRX) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitabiliy, earnings, analyst recommendations, valuation, risk and dividends.

Profitability

This table compares WellCare Health Plans and Catamaran Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WellCare Health Plans 1.85% 14.75% 4.37%
Catamaran Corp 1.66% 6.54% 4.25%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for WellCare Health Plans and Catamaran Corp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WellCare Health Plans 0 10 3 0 2.23
Catamaran Corp 0 0 0 0 N/A

WellCare Health Plans presently has a consensus price target of $155.60, suggesting a potential downside of 13.93%. Given WellCare Health Plans’ higher probable upside, research analysts clearly believe WellCare Health Plans is more favorable than Catamaran Corp.

Institutional & Insider Ownership

99.5% of WellCare Health Plans shares are held by institutional investors. 0.5% of WellCare Health Plans shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares WellCare Health Plans and Catamaran Corp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
WellCare Health Plans $14.65 billion 0.55 $656.20 million $6.08 29.73
Catamaran Corp N/A N/A N/A N/A N/A

WellCare Health Plans has higher revenue and earnings than Catamaran Corp.

Summary

WellCare Health Plans beats Catamaran Corp on 8 of the 8 factors compared between the two stocks.

About WellCare Health Plans

WellCare Health Plans, Inc. is a managed care company. The Company focuses on government-sponsored managed care services, primarily through Medicaid, Medicare Advantage (MA) and Medicare Prescription Drug Plans (PDPs), to families, children, seniors and individuals with medical needs. The Company operates through three segments: Medicaid Health Plans, Medicare Health Plans and Medicare PDPs. As of December 31, 2016, it served approximately 3.9 million members in 50 states and the District of Columbia. As of December 31, 2016, it operated Medicaid health plans in Arizona, Florida, Georgia, Hawaii, Illinois, Kentucky, Missouri, New Jersey, New York and South Carolina. As of December 31, 2016, it offered MA coordinated care plans (CCPs) in certain counties in Arizona, Arkansas, California, Connecticut, Florida, Georgia, Hawaii, Illinois, Kentucky, Louisiana, Mississippi, New Jersey, New York, South Carolina, Tennessee and Texas.

About Catamaran Corp

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.

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