Molina Healthcare (NYSE: MOH) and Concord Medical Services Holdings Limited (NYSE:CCM) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Molina Healthcare and Concord Medical Services Holdings Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Molina Healthcare 3 5 4 0 2.08
Concord Medical Services Holdings Limited 0 0 0 0 N/A

Molina Healthcare currently has a consensus target price of $61.92, indicating a potential downside of 7.06%. Given Molina Healthcare’s higher probable upside, analysts plainly believe Molina Healthcare is more favorable than Concord Medical Services Holdings Limited.

Earnings and Valuation

This table compares Molina Healthcare and Concord Medical Services Holdings Limited’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Molina Healthcare $18.51 billion 0.21 $106.00 million ($3.61) -18.45
Concord Medical Services Holdings Limited $61.54 million 2.83 -$8.19 million ($0.67) -5.96

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

Profitability

This table compares Molina Healthcare and Concord Medical Services Holdings Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Molina Healthcare -1.07% 16.10% 3.35%
Concord Medical Services Holdings Limited N/A N/A N/A

Institutional & Insider Ownership

96.0% of Molina Healthcare shares are owned by institutional investors. Comparatively, 12.6% of Concord Medical Services Holdings Limited shares are owned by institutional investors. 6.2% of Molina Healthcare shares are owned by insiders. Comparatively, 46.5% of Concord Medical Services Holdings Limited shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Molina Healthcare has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Concord Medical Services Holdings Limited has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Summary

Molina Healthcare beats Concord Medical Services Holdings Limited on 8 of the 12 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 Concord Medical Services Holdings Limited

Concord Medical Services Holdings Limited is engaged in the leasing of radiotherapy and diagnostic imaging equipment, the provision of management services to hospitals. The Company is also engaged in hospital operations. The Company’s segments are network and premium cancer hospital. The Company operates a network of radiotherapy and diagnostic imaging centers in China. Its network consists of approximately 130 cooperative centers based in over 70 hospitals, spanning approximately 60 cities across 25 provinces and administrative regions in China. Its network includes approximately 60 radiotherapy centers and over 60 diagnostic imaging centers and approximately seven centers. The Company’s cooperative centers are equipped with a primary unit of medical equipment, such as a linear accelerator, head gamma knife system, body gamma knife system, positron emission tomography-computed tomography (PET-CT) scanner or magnetic resonance imaging (MRI) scanner.

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