Head to Head Survey: Magellan Health (NASDAQ:MGLN) versus The Competition

Magellan Health (NASDAQ: MGLN) is one of 15 public companies in the “Managed Health Care” industry, but how does it compare to its competitors? We will compare Magellan Health to related businesses based on the strength of its risk, institutional ownership, valuation, dividends, profitability, analyst recommendations and earnings.

Insider & Institutional Ownership

93.3% of Magellan Health shares are owned by institutional investors. Comparatively, 90.6% 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, 2.4% of shares of all “Managed Health Care” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.


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

Net Margins Return on Equity Return on Assets
Magellan Health 1.68% 9.20% 4.21%
Magellan Health Competitors 1.81% 11.16% 3.57%

Valuation & Earnings

This table compares Magellan Health and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Magellan Health $4.84 billion $77.87 million 21.98
Magellan Health Competitors $50.73 billion $1.52 billion 12.06

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

Analyst Recommendations

This is a breakdown of recent ratings for Magellan Health and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Magellan Health 1 0 3 0 2.50
Magellan Health Competitors 88 1028 1685 27 2.58

Magellan Health presently has a consensus target price of $81.25, suggesting a potential downside of 2.46%. As a group, “Managed Health Care” companies have a potential downside of 1.87%. Given Magellan Health’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Magellan Health has less favorable growth aspects than its competitors.

Volatility & Risk

Magellan Health has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Magellan Health’s competitors have a beta of 0.62, meaning that their average share price is 38% less volatile than the S&P 500.


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

About Magellan Health

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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