Molina Healthcare (MOH) & The Competition Critical Comparison

Molina Healthcare (NYSE: MOH) is one of 14 public companies in the “Managed Health Care” industry, but how does it weigh in compared to its rivals? We will compare Molina Healthcare to related businesses based on the strength of its profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Molina Healthcare and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Molina Healthcare 3 6 4 0 2.08
Molina Healthcare Competitors 79 860 1412 22 2.58

Molina Healthcare presently has a consensus target price of $62.54, indicating a potential downside of 4.02%. As a group, “Managed Health Care” companies have a potential upside of 1.41%. Given Molina Healthcare’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Molina Healthcare has less favorable growth aspects than its rivals.

Volatility and Risk

Molina Healthcare has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Molina Healthcare’s rivals have a beta of 0.76, indicating that their average stock price is 24% less volatile than the S&P 500.

Institutional and Insider Ownership

96.0% of Molina Healthcare shares are owned by institutional investors. Comparatively, 90.2% of shares of all “Managed Health Care” companies are owned by institutional investors. 6.2% of Molina Healthcare shares are owned by company insiders. Comparatively, 2.5% of shares of all “Managed Health Care” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Molina Healthcare and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Molina Healthcare -1.07% 16.10% 3.35%
Molina Healthcare Competitors 1.70% 10.53% 3.41%

Earnings and Valuation

This table compares Molina Healthcare and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Molina Healthcare $18.51 billion $106.00 million -18.05
Molina Healthcare Competitors $52.30 billion $3.74 billion 17.51

Molina Healthcare’s rivals have higher revenue and earnings than Molina Healthcare. Molina Healthcare is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Molina Healthcare rivals beat Molina Healthcare on 8 of the 13 factors compared.

Molina Healthcare Company Profile

Molina Healthcare, Inc. offers Medicaid-related solutions for low-income families and individuals, and assists government agencies in their administration of the Medicaid program. The Company operates through three segments: Health Plans, Molina Medicaid Solutions and Other, which includes its Pathways Health and Community Support LLC (Pathways) business. It arranges healthcare services for persons served by Medicaid, Medicare, the Children’s Health Insurance Program (CHIP) and the Marketplace, and products to assist government agencies in their administration of the Medicaid program. As of December 31, 2016, the Company’s Health Plans segment consisted of health plans in 12 states and the Commonwealth of Puerto Rico, and its direct delivery business. The Molina Medicaid Solutions segment provides support to state government agencies in the administration of their Medicaid programs, including business processing, information technology development, and administrative services.

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