Critical Analysis: Triple-S Management Corporation (GTS) versus Magellan Health (MGLN)

Triple-S Management Corporation (NYSE: GTS) and Magellan Health (NASDAQ:MGLN) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Triple-S Management Corporation and Magellan Health, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Triple-S Management Corporation 0 1 0 0 2.00
Magellan Health 1 0 3 0 2.50

Triple-S Management Corporation currently has a consensus price target of $20.00, indicating a potential downside of 15.40%. Magellan Health has a consensus price target of $80.25, indicating a potential upside of 2.03%. Given Magellan Health’s stronger consensus rating and higher probable upside, analysts clearly believe Magellan Health is more favorable than Triple-S Management Corporation.

Risk & Volatility

Triple-S Management Corporation has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Magellan Health has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Valuation & Earnings

This table compares Triple-S Management Corporation and Magellan Health’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Triple-S Management Corporation $2.94 billion 0.19 $21.98 million $0.76 31.11
Magellan Health $5.28 billion 0.35 $242.58 million $3.53 22.28

Magellan Health has higher revenue and earnings than Triple-S Management Corporation. Magellan Health is trading at a lower price-to-earnings ratio than Triple-S Management Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Triple-S Management Corporation and Magellan Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Triple-S Management Corporation 0.63% 0.19% 0.07%
Magellan Health 1.59% 8.88% 4.08%

Insider and Institutional Ownership

80.9% of Triple-S Management Corporation shares are held by institutional investors. Comparatively, 92.3% of Magellan Health shares are held by institutional investors. 1.5% of Triple-S Management Corporation shares are held by company insiders. Comparatively, 3.6% of Magellan Health shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Magellan Health beats Triple-S Management Corporation on 13 of the 14 factors compared between the two stocks.

Triple-S Management Corporation Company Profile

Triple-S Management Corporation operates as a managed care company. The Company offers a range of managed care and related products in the commercial, Medicaid and Medicare markets. The Company’s segments include Managed Care, Life Insurance, and Property and Casualty Insurance. The Managed Care segment is engaged in the sale of managed care products to the Commercial, Medicare and Medicaid market sectors. The Life Insurance segment offers life and accident and health insurance coverage, and annuity products. The premiums for this segment are mainly subscribed through an internal sales force and a network of independent brokers and agents. The insurance products of Property and Casualty Insurance segment includes commercial package, commercial auto, and personal package. The premiums for this segment are originated through a network of independent insurance agents and brokers.

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).

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