Critical Analysis: Catamaran (CTRX) vs. Its Competitors

Catamaran (NASDAQ: CTRX) is one of 13 public companies in the “Managed Health Care” industry, but how does it weigh in compared to its peers? We will compare Catamaran to related companies based on the strength of its dividends, earnings, institutional ownership, profitability, risk, analyst recommendations and valuation.

Valuation and Earnings

This table compares Catamaran and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Catamaran N/A N/A 37.48
Catamaran Competitors $50.73 billion $1.52 billion 10.32

Catamaran’s peers have higher revenue and earnings than Catamaran. Catamaran 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.

Risk and Volatility

Catamaran has a beta of -0.18, meaning that its share price is 118% less volatile than the S&P 500. Comparatively, Catamaran’s peers have a beta of 0.70, meaning that their average share price is 31% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Catamaran and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Catamaran 0 0 0 0 N/A
Catamaran Competitors 81 939 1490 26 2.58

As a group, “Managed Health Care” companies have a potential downside of 4.02%. Given Catamaran’s peers higher probable upside, analysts plainly believe Catamaran has less favorable growth aspects than its peers.

Institutional and Insider Ownership

90.7% of shares of all “Managed Health Care” companies are owned by institutional investors. 2.6% of shares of all “Managed Health Care” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Catamaran and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Catamaran 1.66% 6.54% 4.25%
Catamaran Competitors 1.83% 11.42% 3.50%

Summary

Catamaran peers beat Catamaran on 7 of the 8 factors compared.

Catamaran Company Profile

Catamaran Corporation (Catamaran) is a provider of pharmacy benefit management (PBM) services and healthcare information technology (HCIT) solutions to the healthcare benefit management industry. The Company operates in two segments: PBM and HCIT. The Company offers PBM services, which are marketed under the Catamaran PBM brand, and is engaged in owning and operating a network of mail and specialty pharmacies. In addition, the Company is a national provider of drug benefits to its customers under the federal government’s Medicare Part D program. The Company’s HCIT product offerings include a range of software products for managing prescription drug programs and for drug prescribing and dispensing. The Company’s customers include organizations in the pharmaceutical supply chain, such as pharmacy benefit managers, managed care organizations, self-insured employer groups, unions, third-party healthcare plan administrators, and state and federal government entities.

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