Analyzing Catamaran Corp (SXCI) & Humana (HUM)

Catamaran Corp (NASDAQ: SXCI) and Humana (NYSE:HUM) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Insider & Institutional Ownership

99.7% of Humana shares are owned by institutional investors. 0.8% of Humana shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Catamaran Corp and Humana’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Catamaran Corp N/A N/A N/A N/A N/A
Humana $53.87 billion 0.67 $2.66 billion $12.25 20.41

Humana has higher revenue and earnings than Catamaran Corp.

Dividends

Humana pays an annual dividend of $1.60 per share and has a dividend yield of 0.6%. Catamaran Corp does not pay a dividend. Humana pays out 13.1% of its earnings in the form of a dividend. Humana has raised its dividend for 6 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Catamaran Corp and Humana, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Catamaran Corp 0 0 0 0 N/A
Humana 0 7 12 0 2.63

Humana has a consensus target price of $242.67, indicating a potential downside of 2.93%. Given Humana’s higher possible upside, analysts clearly believe Humana is more favorable than Catamaran Corp.

Profitability

This table compares Catamaran Corp and Humana’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Catamaran Corp 1.66% 6.54% 4.25%
Humana 4.80% 24.61% 8.15%

Summary

Humana beats Catamaran Corp on 10 of the 11 factors compared between the two stocks.

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.

About Humana

Humana Inc. is a health and well-being company. The Company’s segments include Retail, Group and Specialty, Healthcare Services and Individual Commercial. The Retail segment consists of Medicare benefits, as well as individual commercial fully insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products. The Group and Specialty segment consists of employer group commercial fully insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health. The Healthcare Services segment includes services offered to its health plan members, as well as to third parties, including pharmacy solutions, provider services, home-based services and clinical programs, as well as services and capabilities to manage population health. The Individual Commercial segment includes Individual Commercial products marketed under the HumanaOne brand.

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