Coventry Health Care (CVH) vs. Magellan Health (MGLN) Head to Head Comparison

Coventry Health Care (NYSE: CVH) and Magellan Health (NASDAQ:MGLN) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Coventry Health Care N/A N/A N/A
Magellan Health 1.68% 9.20% 4.21%

Institutional & Insider Ownership

94.9% of Magellan Health shares are held by institutional investors. 3.6% of Magellan Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Coventry Health Care and Magellan Health’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Coventry Health Care N/A N/A N/A $3.29 N/A
Magellan Health $4.84 billion 0.49 $77.87 million $3.79 26.12

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

Analyst Recommendations

This is a breakdown of current ratings for Coventry Health Care and Magellan Health, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coventry Health Care 0 0 0 0 N/A
Magellan Health 0 1 3 0 2.75

Magellan Health has a consensus target price of $90.67, indicating a potential downside of 8.42%.

Summary

Magellan Health beats Coventry Health Care on 8 of the 8 factors compared between the two stocks.

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.

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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