Aetna (NYSE: AET) and Catamaran Corp (NASDAQ:SXCI) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.
This is a breakdown of recent ratings and recommmendations for Aetna and Catamaran Corp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aetna presently has a consensus target price of $163.69, indicating a potential upside of 8.09%. Given Aetna’s higher probable upside, research analysts plainly believe Aetna is more favorable than Catamaran Corp.
Institutional & Insider Ownership
89.5% of Aetna shares are owned by institutional investors. 1.1% of Aetna shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Aetna pays an annual dividend of $2.00 per share and has a dividend yield of 1.3%. Catamaran Corp does not pay a dividend. Aetna pays out 43.7% of its earnings in the form of a dividend.
This table compares Aetna and Catamaran Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Aetna and Catamaran Corp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Aetna||$62.20 billion||0.81||$6.06 billion||$4.58||33.07|
Aetna has higher revenue and earnings than Catamaran Corp.
Aetna beats Catamaran Corp on 9 of the 10 factors compared between the two stocks.
Aetna Inc. is a diversified healthcare benefits company. The Company operates through three segments: Health Care, Group Insurance and Large Case Pensions. It offers a range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, medical management capabilities, Medicaid healthcare management services, Medicare Advantage and Medicare Supplement plans, workers’ compensation administrative services and health information technology (HIT) products and services. The Health Care segment consists of medical, pharmacy benefit management services, dental, behavioral health and vision plans offered on both an Insured basis and an employer-funded basis, and emerging businesses products and services. The Group Insurance segment includes group life insurance and group disability products. Its products are offered on an Insured basis.
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.
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