Catamaran Corp (NASDAQ: SXCI) and WellCare Health Plans (NYSE:WCG) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their profitabiliy, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.
This table compares Catamaran Corp and WellCare Health Plans’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|WellCare Health Plans||1.85%||14.75%||4.37%|
Institutional & Insider Ownership
99.5% of WellCare Health Plans shares are held by institutional investors. 0.5% of WellCare Health Plans shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Catamaran Corp and WellCare Health Plans’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|WellCare Health Plans||$14.65 billion||0.55||$656.20 million||$6.08||29.55|
WellCare Health Plans has higher revenue and earnings than Catamaran Corp.
This is a summary of current recommendations for Catamaran Corp and WellCare Health Plans, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WellCare Health Plans||0||10||3||0||2.23|
WellCare Health Plans has a consensus price target of $155.60, suggesting a potential downside of 13.39%. Given WellCare Health Plans’ higher probable upside, analysts clearly believe WellCare Health Plans is more favorable than Catamaran Corp.
WellCare Health Plans beats Catamaran Corp on 8 of the 8 factors compared between the two stocks.
About Catamaran Corp
Catamaran Corporation (Catamaran) is a provider of pharmacy benefit management (PBM) services and healthcare information technology (HCIT) solutions to the healthcare benefit management industry. The Company operates in two segments: PBM and HCIT. The Company offers PBM services, which are marketed under the Catamaran PBM brand, and is engaged in owning and operating a network of mail and specialty pharmacies. In addition, the Company is a national provider of drug benefits to its customers under the federal government’s Medicare Part D program. The Company’s HCIT product offerings include a range of software products for managing prescription drug programs and for drug prescribing and dispensing. The Company’s customers include organizations in the pharmaceutical supply chain, such as pharmacy benefit managers, managed care organizations, self-insured employer groups, unions, third-party healthcare plan administrators, and state and federal government entities.
About WellCare Health Plans
WellCare Health Plans, Inc. is a managed care company. The Company focuses on government-sponsored managed care services, primarily through Medicaid, Medicare Advantage (MA) and Medicare Prescription Drug Plans (PDPs), to families, children, seniors and individuals with medical needs. The Company operates through three segments: Medicaid Health Plans, Medicare Health Plans and Medicare PDPs. As of December 31, 2016, it served approximately 3.9 million members in 50 states and the District of Columbia. As of December 31, 2016, it operated Medicaid health plans in Arizona, Florida, Georgia, Hawaii, Illinois, Kentucky, Missouri, New Jersey, New York and South Carolina. As of December 31, 2016, it offered MA coordinated care plans (CCPs) in certain counties in Arizona, Arkansas, California, Connecticut, Florida, Georgia, Hawaii, Illinois, Kentucky, Louisiana, Mississippi, New Jersey, New York, South Carolina, Tennessee and Texas.
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