Analyzing WellCare Health Plans (WCG) and Coventry Health Care (CVH)

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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WellCare Health Plans $17.01 billion 0.51 $373.70 million $8.31 23.25
Coventry Health Care N/A N/A N/A $3.29 N/A

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

98.9% 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
WellCare Health Plans 2.20% 17.10% 4.46%
Coventry Health Care N/A N/A N/A

Analyst Ratings

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

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

WellCare Health Plans presently has a consensus target price of $218.00, suggesting a potential upside of 12.83%.

Summary

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

WellCare Health Plans Company Profile

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.

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.

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

Leave a Reply