Molina Healthcare (NYSE: MOH) is one of 14 public companies in the “Managed Health Care” industry, but how does it contrast to its peers? We will compare Molina Healthcare to related companies based on the strength of its profitability, dividends, analyst recommendations, valuation, institutional ownership, risk and earnings.

Risk and Volatility

Molina Healthcare has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Molina Healthcare’s peers have a beta of 0.76, indicating that their average share price is 24% less volatile than the S&P 500.

Insider and Institutional Ownership

96.0% of Molina Healthcare shares are owned by institutional investors. Comparatively, 90.2% of shares of all “Managed Health Care” companies are owned by institutional investors. 6.2% of Molina Healthcare shares are owned by company insiders. Comparatively, 2.4% of shares of all “Managed Health Care” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Molina Healthcare and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Molina Healthcare $18.51 billion $106.00 million -18.66
Molina Healthcare Competitors $52.30 billion $3.74 billion 17.83

Molina Healthcare’s peers have higher revenue and earnings than Molina Healthcare. Molina Healthcare is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Molina Healthcare and its peers’ 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%
Molina Healthcare Competitors 1.70% 10.53% 3.41%

Analyst Ratings

This is a summary of current ratings and price targets for Molina Healthcare and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Molina Healthcare 3 6 4 0 2.08
Molina Healthcare Competitors 79 854 1409 22 2.58

Molina Healthcare presently has a consensus target price of $62.54, suggesting a potential downside of 7.17%. As a group, “Managed Health Care” companies have a potential downside of 1.06%. Given Molina Healthcare’s peers stronger consensus rating and higher possible upside, analysts plainly believe Molina Healthcare has less favorable growth aspects than its peers.

Summary

Molina Healthcare peers beat Molina Healthcare on 8 of the 13 factors compared.

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.

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