Reviewing Select Medical (NYSE:SEM) & Molina Healthcare (NYSE:MOH)

Select Medical (NYSE:SEMGet Free Report) and Molina Healthcare (NYSE:MOHGet Free Report) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Select Medical 2.37% 8.87% 2.93%
Molina Healthcare 2.60% 27.72% 7.88%

Institutional and Insider Ownership

89.5% of Select Medical shares are owned by institutional investors. Comparatively, 98.5% of Molina Healthcare shares are owned by institutional investors. 11.6% of Select Medical shares are owned by company insiders. Comparatively, 1.3% of Molina Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Select Medical has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Molina Healthcare has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Earnings and Valuation

This table compares Select Medical and Molina Healthcare”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Select Medical $5.19 billion 0.31 $214.04 million $1.06 12.19
Molina Healthcare $40.65 billion 0.23 $1.18 billion $20.29 8.35

Molina Healthcare has higher revenue and earnings than Select Medical. Molina Healthcare is trading at a lower price-to-earnings ratio than Select Medical, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Select Medical and Molina Healthcare, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Select Medical 0 1 4 0 2.80
Molina Healthcare 0 10 3 0 2.23

Select Medical presently has a consensus target price of $24.60, suggesting a potential upside of 90.42%. Molina Healthcare has a consensus target price of $242.9091, suggesting a potential upside of 43.33%. Given Select Medical’s stronger consensus rating and higher possible upside, analysts clearly believe Select Medical is more favorable than Molina Healthcare.

About Select Medical

(Get Free Report)

Select Medical Holdings Corporation, through its subsidiaries, operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States. It operates in four segments: Critical Illness Recovery Hospital, Rehabilitation Hospital, Outpatient Rehabilitation, and Concentra. The Critical Illness Recovery Hospital segment consists of hospitals that provide services for heart failure, infectious disease, respiratory failure and pulmonary disease, surgery requiring prolonged recovery, renal disease, neurological events, and trauma. The Rehabilitation Hospital segment offers therapy and rehabilitation treatments, including rehabilitative services for brain and spinal cord injuries, strokes, amputations, neurological disorders, orthopedic conditions, pediatric congenital or acquired disabilities, and cancer. The Outpatient Rehabilitation segment operates rehabilitation clinics that provide physical, occupational, and speech rehabilitation programs and services; and specialized programs, such as functional programs for work related injuries, hand therapy, post-concussion rehabilitation, pediatric and cancer rehabilitation, and athletic training services. The Concentra segment operates and provides occupational health centers, telemedicine platforms, onsite clinics, and contract services at employer worksites that deliver occupational health services, consumer health, physical therapy, and preventive care. Select Medical Holdings Corporation was founded in 1996 and is headquartered in Mechanicsburg, Pennsylvania.

About Molina Healthcare

(Get Free Report)

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.

Receive News & Ratings for Select Medical Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Select Medical and related companies with MarketBeat.com's FREE daily email newsletter.