Magellan Health (NASDAQ: MGLN) is one of 14 publicly-traded companies in the “Managed Health Care” industry, but how does it compare to its rivals? We will compare Magellan Health to similar businesses based on the strength of its valuation, profitability, dividends, risk, earnings, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Magellan Health and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Magellan Health $5.28 billion $242.58 million 23.88
Magellan Health Competitors $52.70 billion $3.80 billion 18.10

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Magellan Health and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Magellan Health 1 0 3 0 2.50
Magellan Health Competitors 79 880 1442 23 2.58

Magellan Health currently has a consensus price target of $81.25, suggesting a potential downside of 3.62%. As a group, “Managed Health Care” companies have a potential downside of 2.10%. Given Magellan Health’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Magellan Health has less favorable growth aspects than its rivals.

Volatility and Risk

Magellan Health has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Magellan Health’s rivals have a beta of 0.76, indicating that their average share price is 24% less volatile than the S&P 500.

Profitability

This table compares Magellan Health and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Magellan Health 1.59% 8.88% 4.08%
Magellan Health Competitors 1.86% 10.65% 3.45%

Institutional and Insider Ownership

93.3% of Magellan Health shares are owned by institutional investors. Comparatively, 90.3% of shares of all “Managed Health Care” companies are owned by institutional investors. 3.6% of Magellan Health 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 stock will outperform the market over the long term.

Summary

Magellan Health rivals beat Magellan Health on 8 of the 13 factors compared.

Magellan Health Company Profile

Magellan Health, Inc. is engaged in the healthcare management business. The Company’s segments include Healthcare, Pharmacy Management and Corporate. It is focused on managing special populations, complete pharmacy benefits and other specialty areas of healthcare. Its Healthcare includes its management of behavioral healthcare services and employee assistance program (EAP) services, management of other specialty areas, including diagnostic imaging and musculoskeletal management, and the integrated management of physical, behavioral and pharmaceutical healthcare for special populations, delivered through Magellan Complete Care (MCC). Its Pharmacy Management segment consists of products and solutions that provide clinical and financial management of pharmaceuticals paid under medical and pharmacy benefit programs. Its Corporate segment consists primarily of operational support functions. It provides services to health plans and other managed care organizations (MCOs).

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