Magellan Health (NASDAQ: MGLN) is one of 14 publicly-traded companies in the “Managed Health Care” industry, but how does it contrast to its competitors? We will compare Magellan Health to similar businesses based on the strength of its valuation, dividends, profitability, risk, analyst recommendations, institutional ownership and earnings.

Analyst Recommendations

This is a summary of recent ratings for Magellan Health and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Magellan Health 1 0 3 0 2.50
Magellan Health Competitors 79 880 1442 23 2.58

Magellan Health presently has a consensus target price of $81.25, suggesting a potential downside of 4.13%. As a group, “Managed Health Care” companies have a potential downside of 3.50%. Given Magellan Health’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Magellan Health has less favorable growth aspects than its competitors.

Volatility and Risk

Magellan Health has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Magellan Health’s competitors have a beta of 0.76, suggesting that their average stock price is 24% less volatile than the S&P 500.

Institutional & Insider Ownership

93.3% of Magellan Health shares are held by institutional investors. Comparatively, 90.3% of shares of all “Managed Health Care” companies are held by institutional investors. 3.6% of Magellan Health shares are held by insiders. Comparatively, 2.5% of shares of all “Managed Health Care” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Magellan Health and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Magellan Health 1.59% 8.88% 4.08%
Magellan Health Competitors 1.70% 10.28% 3.36%

Earnings & Valuation

This table compares Magellan Health and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Magellan Health $5.28 billion $242.58 million 24.01
Magellan Health Competitors $52.70 billion $3.80 billion 18.36

Magellan Health’s competitors have higher revenue and earnings than Magellan Health. Magellan Health is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Magellan Health competitors beat Magellan Health on 8 of the 13 factors compared.

Magellan Health Company Profile

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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