Reviewing Magellan Health (MGLN) & The Competition
Magellan Health (NASDAQ: MGLN) is one of 14 publicly-traded companies in the “Managed Health Care” industry, but how does it compare to its peers? We will compare Magellan Health to related companies based on the strength of its analyst recommendations, dividends, valuation, profitability, earnings, risk and institutional ownership.
Volatility and Risk
Magellan Health has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Magellan Health’s peers have a beta of 0.76, indicating that their average stock price is 24% less volatile than the S&P 500.
Insider & Institutional Ownership
93.6% of Magellan Health shares are held by institutional investors. Comparatively, 90.2% of shares of all “Managed Health Care” companies are held by institutional investors. 3.6% of Magellan Health shares are held by company insiders. Comparatively, 2.4% of shares of all “Managed Health Care” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Magellan Health and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Magellan Health||$5.28 billion||$242.58 million||24.43|
|Magellan Health Competitors||$52.70 billion||$3.80 billion||17.79|
Magellan Health’s peers have higher revenue and earnings than Magellan Health. Magellan Health is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a summary of current recommendations for Magellan Health and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Magellan Health Competitors||79||873||1433||22||2.58|
Magellan Health presently has a consensus price target of $81.25, indicating a potential downside of 5.80%. As a group, “Managed Health Care” companies have a potential upside of 1.92%. Given Magellan Health’s peers stronger consensus rating and higher possible upside, analysts plainly believe Magellan Health has less favorable growth aspects than its peers.
This table compares Magellan Health and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Magellan Health Competitors||1.72%||10.53%||3.42%|
Magellan Health peers 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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