Head-To-Head Review: Molina Healthcare (MOH) versus Trupanion (TRUP)

Molina Healthcare (NYSE: MOH) and Trupanion (NASDAQ:TRUP) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.

Profitability

This table compares Molina Healthcare and Trupanion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Molina Healthcare -2.46% 20.08% 3.34%
Trupanion -0.58% -6.54% -2.98%

Valuation and Earnings

This table compares Molina Healthcare and Trupanion’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Molina Healthcare $19.88 billion 0.26 -$512.00 million $0.56 151.59
Trupanion $242.67 million 3.87 -$1.50 million ($0.07) -429.86

Trupanion has lower revenue, but higher earnings than Molina Healthcare. Trupanion is trading at a lower price-to-earnings ratio than Molina Healthcare, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Molina Healthcare and Trupanion, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Molina Healthcare 3 6 5 0 2.14
Trupanion 0 1 6 0 2.86

Molina Healthcare currently has a consensus price target of $79.67, indicating a potential downside of 6.15%. Trupanion has a consensus price target of $36.17, indicating a potential upside of 20.19%. Given Trupanion’s stronger consensus rating and higher possible upside, analysts plainly believe Trupanion is more favorable than Molina Healthcare.

Institutional & Insider Ownership

87.7% of Trupanion shares are held by institutional investors. 0.7% of Molina Healthcare shares are held by company insiders. Comparatively, 20.7% of Trupanion shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Molina Healthcare has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Trupanion has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Summary

Trupanion beats Molina Healthcare on 8 of the 14 factors compared between the two stocks.

Molina Healthcare Company Profile

Molina Healthcare, Inc. provides Medicaid-related solutions to meet the health care needs of low-income families and individuals; and to assist state agencies in their administration of the Medicaid program in the United States. It operates through three segments: Health Plans, Molina Medicaid Solutions, and Other. The Health Plans segment operates health plans in 12 states. As of December 31, 2017, this segment served approximately 4.5 million members who were eligible for Medicaid, Medicare, and other government-sponsored health care programs. The Molina Medicaid Solutions segment offers business process, information technology development, and administrative services to Medicaid agencies in Idaho, Louisiana, Maine, New Jersey, and West Virginia, as well as the U.S. Virgin Islands; and drug rebate administration services in Florida. The Other segment provides behavioral health and social services. The company offers health care services for its members through contracts with physicians, hospitals, and other providers. Molina Healthcare, Inc. was founded in 1980 and is headquartered in Long Beach, California.

Trupanion Company Profile

Trupanion, Inc., together with its subsidiaries, provides medical insurance for cats and dogs on monthly subscription basis in the United States, Canada, and Puerto Rico. The company operates through Subscription Business and Other Business segments. It serves pet owners and veterinarians through third-party referrals and online member acquisition channels. The company was formerly known as Vetinsurance International, Inc. changed its name to Trupanion, Inc. in 2013. Trupanion, Inc. was founded in 2000 and is headquartered in Seattle, Washington.

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