Reviewing Centene (CNC) & Advanzeon Solutions (CHCR)

Centene (NYSE:CNC) and Advanzeon Solutions (OTCMKTS:CHCR) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Earnings and Valuation

This table compares Centene and Advanzeon Solutions’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Centene $48.38 billion 0.58 $828.00 million $5.03 27.04
Advanzeon Solutions N/A N/A N/A N/A N/A

Centene has higher revenue and earnings than Advanzeon Solutions.

Volatility and Risk

Centene has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Advanzeon Solutions has a beta of 2.2, meaning that its stock price is 120% more volatile than the S&P 500.

Institutional and Insider Ownership

89.4% of Centene shares are held by institutional investors. 3.0% of Centene shares are held by company insiders. Comparatively, 16.5% of Advanzeon Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Centene and Advanzeon Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Centene 1.58% 14.42% 4.84%
Advanzeon Solutions N/A N/A N/A

Analyst Ratings

This is a summary of recent ratings for Centene and Advanzeon Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centene 0 2 13 0 2.87
Advanzeon Solutions 0 0 0 0 N/A

Centene currently has a consensus target price of $151.65, suggesting a potential upside of 11.50%. Given Centene’s higher possible upside, equities research analysts clearly believe Centene is more favorable than Advanzeon Solutions.

Summary

Centene beats Advanzeon Solutions on 7 of the 9 factors compared between the two stocks.

About Centene

Centene Corporation operates as a diversified and multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States. It operates through two segments, Managed Care and Specialty Services. The Managed Care segment offers health plan coverage to individuals through government subsidized programs, including Medicaid, the State children's health insurance program, long-term care, foster care, and dual eligible individual, as well as aged, blind, or disabled programs. Its health plans include primary and specialty physician care, inpatient and outpatient hospital care, emergency and urgent care, prenatal care, laboratory and X-ray services, home-based primary care, transportation assistance, vision care, dental care, immunizations, prescriptions and limited over-the-counter drugs, specialty pharmacy, therapies, social work services, and care coordination. The Specialty Services segment provides pharmacy benefits management services; health, triage, wellness, and disease management services; vision and dental services; correctional healthcare services; home based primary care services; and integrated long-term care services, as well as care management software that automate the clinical, administrative, and technical components of care management programs. This segment offers its services and products to state programs, correctional facilities, healthcare organizations, employer groups, military service members and their families, and other commercial organizations. The company provides its services through primary and specialty care physicians, hospitals, and ancillary providers. Centene Corporation was founded in 1984 and is headquartered in St. Louis, Missouri.

About Advanzeon Solutions

Advanzeon Solutions, Inc. provides managed care services in the behavioral health, substance abuse, and pharmacy management fields in 47 states, the District of Columbia, and Puerto Rico. The company's managed care operations include administrative service agreements, fee-for-service agreements, and capitation contracts. Its programs and services comprise integrated behavioral healthcare and pharmacy management services; management of prescription drugs on an at-risk basis; analytic services for medical and pharmacy claims; case management/utilization review services; administrative services management; preferred provider network development; management and physician advisor reviews; and overall care management services. The company also offers outpatient programs, such as counseling or therapy; intermediate care programs, such as intensive outpatient programs and partial hospitalization services; inpatient programs; and crisis intervention services through psychiatrists, psychologists, therapists, other licensed healthcare professionals, psychiatric hospitals, general medical facilities, residential treatment centers, and other treatment facilities. It serves commercial, Medicare, Medicaid, and Children's Health Insurance Program health plans, as well as self-insured companies and unions. The company was formerly known as Comprehensive Care Corporation and changed its name to Advanzeon Solutions, Inc. in January 2014. Advanzeon Solutions, Inc. was founded in 1969 and is headquartered in Tampa, Florida.

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