Reviewing Molina Healthcare (NYSE:MOH) and United American Healthcare (OTCMKTS:UAHC)

United American Healthcare (OTCMKTS:UAHC) and Molina Healthcare (NYSE:MOH) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Profitability

This table compares United American Healthcare and Molina Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United American Healthcare	N/A	N/A	N/A
Molina Healthcare	2.60%	27.72%	7.88%

Volatility and Risk

United American Healthcare has a beta of -1.5, suggesting that its share price is 250% less volatile than the S&P 500. Comparatively, Molina Healthcare has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Institutional & Insider Ownership

98.5% of Molina Healthcare shares are held by institutional investors. 14.3% of United American Healthcare shares are held by insiders. Comparatively, 1.3% of Molina Healthcare shares are held by 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.

Analyst Ratings

This is a summary of current recommendations and price targets for United American Healthcare and Molina Healthcare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United American Healthcare	0	0	0	0	0.00
Molina Healthcare	0	10	3	0	2.23

Molina Healthcare has a consensus target price of $244.5455, suggesting a potential upside of 55.75%. Given Molina Healthcare’s stronger consensus rating and higher probable upside, analysts clearly believe Molina Healthcare is more favorable than United American Healthcare.

Earnings & Valuation

This table compares United American Healthcare and Molina Healthcare”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United American Healthcare	N/A	N/A	$240,000.00	N/A	N/A
Molina Healthcare	$40.65 billion	0.21	$1.18 billion	$20.29	7.74

Molina Healthcare has higher revenue and earnings than United American Healthcare.

Summary

Molina Healthcare beats United American Healthcare on 10 of the 11 factors compared between the two stocks.

About United American Healthcare

United American Healthcare Corporation, through its subsidiaries, provides contract manufacturing services to the medical device industry. It also focuses on the production of natural rubber. The company was incorporated in 1983 and is based in Chicago, Illinois.

About Molina Healthcare

Molina Healthcare, Inc. provides managed healthcare services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces. It operates in four segments: Medicaid, Medicare, Marketplace, and Other. The company served in across 19 states. The company was founded in 1980 and is headquartered in Long Beach, California.