Critical Comparison: Coventry Health Care (CVH) vs. Molina Healthcare (MOH)

Molina Healthcare (NYSE: MOH) and Coventry Health Care (NYSE:CVH) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Profitability

This table compares Molina Healthcare and Coventry Health Care’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Molina Healthcare -1.76% 17.76% 3.40%
Coventry Health Care N/A N/A N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Molina Healthcare and Coventry Health Care, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Molina Healthcare 3 6 5 0 2.14
Coventry Health Care 0 0 0 0 N/A

Molina Healthcare currently has a consensus target price of $64.71, indicating a potential downside of 15.42%.

Institutional and Insider Ownership

96.2% of Molina Healthcare shares are held by institutional investors. 6.2% of Molina Healthcare shares 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.

Earnings & Valuation

This table compares Molina Healthcare and Coventry Health Care’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Molina Healthcare $17.71 billion 0.25 $52.00 million ($6.07) -12.60
Coventry Health Care N/A N/A N/A $3.29 N/A

Molina Healthcare has higher revenue and earnings than Coventry Health Care. Molina Healthcare is trading at a lower price-to-earnings ratio than Coventry Health Care, indicating that it is currently the more affordable of the two stocks.

Summary

Molina Healthcare beats Coventry Health Care on 6 of the 8 factors compared between the two stocks.

Molina Healthcare Company Profile

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.

Coventry Health Care Company Profile

Coventry Health Care, Inc. (Coventry) is a diversified national managed healthcare company based in Bethesda, Maryland. Coventry operates health plans, insurance companies, network rental and workers’ compensation services companies. The Company operates in three segments: Health Plan and Medical Services, Specialized Managed Care, and Workers’ Compensation. On January 1, 2012 the Company completed its acquisition of Children’s Mercy’s Family Health Partners, a Medicaid health plan. In May 2013, Aetna Inc announced it has completed its acquisition of Coventry Health Care, Inc.

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