Molina Healthcare (MOH) vs. Its Peers Critical Analysis

Molina Healthcare (NYSE: MOH) is one of 50 public companies in the “Healthcare Facilities & Services” industry, but how does it weigh in compared to its rivals? We will compare Molina Healthcare to similar businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Molina Healthcare 3 5 4 0 2.08
Molina Healthcare Competitors 264 1567 1963 38 2.46

Molina Healthcare currently has a consensus target price of $61.92, indicating a potential downside of 0.33%. As a group, “Healthcare Facilities & Services” companies have a potential downside of 7.49%. Given Molina Healthcare’s higher probable upside, equities analysts clearly believe Molina Healthcare is more favorable than its rivals.

Institutional and Insider Ownership

96.0% of Molina Healthcare shares are held by institutional investors. Comparatively, 74.7% of shares of all “Healthcare Facilities & Services” companies are held by institutional investors. 6.2% of Molina Healthcare shares are held by insiders. Comparatively, 12.4% of shares of all “Healthcare Facilities & Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Molina Healthcare has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Molina Healthcare’s rivals have a beta of 1.02, meaning that their average share price is 2% more volatile than the S&P 500.

Valuation and Earnings

This table compares Molina Healthcare and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Molina Healthcare $18.51 billion $106.00 million -17.21
Molina Healthcare Competitors $5.89 billion $843.94 million 34.12

Molina Healthcare has higher revenue, but lower earnings than its rivals. 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.

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 9.13% 0.55% 0.55%

Summary

Molina Healthcare rivals beat Molina Healthcare on 7 of the 12 factors compared.

About Molina Healthcare

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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