Head to Head Analysis: Coventry Health Care (CVH) & WellCare Health Plans (WCG)

Coventry Health Care (NYSE: CVH) and WellCare Health Plans (NYSE:WCG) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Earnings & Valuation

This table compares Coventry Health Care and WellCare Health Plans’ top-line revenue, earnings per share 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
WellCare Health Plans $17.01 billion 0.51 $242.10 million $8.31 23.31

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

Insider and Institutional Ownership

99.3% of WellCare Health Plans shares are held by institutional investors. 0.5% of WellCare Health Plans shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coventry Health Care 0 0 0 0 N/A
WellCare Health Plans 0 6 8 0 2.57

WellCare Health Plans has a consensus price target of $218.00, suggesting a potential upside of 12.55%.

Profitability

This table compares Coventry Health Care and WellCare Health Plans’ 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
WellCare Health Plans 2.20% 17.10% 4.46%

Summary

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

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.

About WellCare Health Plans

WellCare Health Plans, Inc. is a managed care company. The Company focuses on government-sponsored managed care services, primarily through Medicaid, Medicare Advantage (MA) and Medicare Prescription Drug Plans (PDPs), to families, children, seniors and individuals with medical needs. The Company operates through three segments: Medicaid Health Plans, Medicare Health Plans and Medicare PDPs. As of December 31, 2016, it served approximately 3.9 million members in 50 states and the District of Columbia. As of December 31, 2016, it operated Medicaid health plans in Arizona, Florida, Georgia, Hawaii, Illinois, Kentucky, Missouri, New Jersey, New York and South Carolina. As of December 31, 2016, it offered MA coordinated care plans (CCPs) in certain counties in Arizona, Arkansas, California, Connecticut, Florida, Georgia, Hawaii, Illinois, Kentucky, Louisiana, Mississippi, New Jersey, New York, South Carolina, Tennessee and Texas.

Receive News & Ratings for Coventry Health Care Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Coventry Health Care and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply