WellCare Health Plans (NYSE: WCG) is one of 14 public companies in the “Managed Health Care” industry, but how does it contrast to its peers? We will compare WellCare Health Plans to similar companies based on the strength of its earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.
Insider and Institutional Ownership
97.7% of WellCare Health Plans shares are held by institutional investors. Comparatively, 90.2% of shares of all “Managed Health Care” companies are held by institutional investors. 0.5% of WellCare Health Plans shares are held by company insiders. Comparatively, 2.5% of shares of all “Managed Health Care” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares WellCare Health Plans and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|WellCare Health Plans||1.66%||14.91%||4.12%|
|WellCare Health Plans Competitors||1.70%||10.53%||3.41%|
Valuation and Earnings
This table compares WellCare Health Plans and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|WellCare Health Plans||$15.36 billion||$623.20 million||30.59|
|WellCare Health Plans Competitors||$52.30 billion||$3.74 billion||17.70|
WellCare Health Plans’ peers have higher revenue and earnings than WellCare Health Plans. WellCare Health Plans is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Risk & Volatility
WellCare Health Plans has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, WellCare Health Plans’ peers have a beta of 0.76, suggesting that their average stock price is 24% less volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for WellCare Health Plans and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WellCare Health Plans||0||9||7||0||2.44|
|WellCare Health Plans Competitors||79||872||1424||22||2.58|
WellCare Health Plans presently has a consensus target price of $180.93, suggesting a potential upside of 3.96%. As a group, “Managed Health Care” companies have a potential upside of 1.24%. Given WellCare Health Plans’ higher possible upside, analysts plainly believe WellCare Health Plans is more favorable than its peers.
WellCare Health Plans peers beat WellCare Health Plans on 7 of the 13 factors compared.
WellCare Health Plans Company Profile
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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