Analyzing Magellan Health (NASDAQ:MGLN) and Catamaran Corp (CTRX)

Magellan Health (NASDAQ: MGLN) and Catamaran Corp (NASDAQ:CTRX) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Magellan Health and Catamaran Corp, as reported by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Magellan Health 1 0 3 0 2.50
Catamaran Corp 0 0 0 0 N/A

Magellan Health currently has a consensus target price of $80.25, suggesting a potential downside of 0.93%. Given Magellan Health’s higher probable upside, research analysts clearly believe Magellan Health is more favorable than Catamaran Corp.


This table compares Magellan Health and Catamaran Corp’s 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%
Catamaran Corp 1.66% 6.54% 4.25%

Insider and Institutional Ownership

93.5% of Magellan Health shares are owned by institutional investors. 3.6% of Magellan Health shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Magellan Health and Catamaran Corp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Magellan Health $5.28 billion 0.36 $242.58 million $3.53 22.95
Catamaran Corp N/A N/A N/A N/A N/A

Magellan Health has higher revenue and earnings than Catamaran Corp.


Magellan Health beats Catamaran Corp on 6 of the 8 factors compared between the two stocks.

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).

Catamaran Corp Company Profile

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.

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