Coventry Health Care (CVH) versus Centene (CNC) Critical Analysis

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

Institutional & Insider Ownership

91.8% of Centene shares are held by institutional investors. 3.0% of Centene shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Centene 1.81% 14.79% 4.34%
Coventry Health Care N/A N/A N/A

Earnings and Valuation

This table compares Centene and Coventry Health Care’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Centene $40.61 billion 0.45 $562.00 million $4.84 22.06
Coventry Health Care N/A N/A N/A $3.29 N/A

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

Analyst Ratings

This is a summary of recent ratings and target prices for Centene and Coventry Health Care, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centene 1 3 14 0 2.72
Coventry Health Care 0 0 0 0 N/A

Centene currently has a consensus target price of $104.00, indicating a potential downside of 2.60%.

Summary

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

About Centene

Centene Corporation is a healthcare company. The Company provides a portfolio of services to government sponsored healthcare programs, focusing on under-insured and uninsured individuals. The Company operates through two segments: Managed Care and Specialty Services. The Company’s Managed Care segment provides health plan coverage to individuals, through government subsidized programs, including Medicaid, the State Children’s Health Insurance Program (CHIP), Long Term Care, Foster Care, dual-eligible individuals (Duals) and the Supplemental Security Income Program, also known as the Aged, Blind or Disabled Program (ABD), Medicare, and Health Insurance Marketplace. Its Specialty Services segment consists of its specialty companies offering a range of healthcare services and products to state programs, correctional facilities, healthcare organizations, employer groups and other commercial organizations, as well as to its own subsidiaries.

About Coventry Health Care

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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