Comparing Coventry Health Care (CVH) and Humana (HUM)

Coventry Health Care (NYSE: CVH) and Humana (NYSE:HUM) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Profitability

This table compares Coventry Health Care and Humana’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coventry Health Care N/A N/A N/A
Humana 3.49% 15.99% 5.63%

Analyst Recommendations

This is a summary of recent recommendations for Coventry Health Care and Humana, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coventry Health Care 0 0 0 0 N/A
Humana 0 8 11 0 2.58

Humana has a consensus price target of $255.72, indicating a potential upside of 3.08%.

Valuation and Earnings

This table compares Coventry Health Care and Humana’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Coventry Health Care N/A N/A N/A $3.29 N/A
Humana $54.38 billion 0.65 $614.00 million $12.70 19.53

Humana has higher revenue and earnings than Coventry Health Care. Coventry Health Care is trading at a lower price-to-earnings ratio than Humana, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

94.0% of Humana shares are held by institutional investors. 0.8% of Humana shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Humana pays an annual dividend of $1.60 per share and has a dividend yield of 0.6%. Coventry Health Care does not pay a dividend. Humana pays out 12.6% of its earnings in the form of a dividend. Coventry Health Care has raised its dividend for 6 consecutive years.

Summary

Humana beats Coventry Health Care on 9 of the 11 factors compared between the two stocks.

Coventry Health Care Company Profile

Coventry Health Care, Inc. (Coventry) is a diversified national managed healthcare company based in Bethesda, Maryland. Coventry operates health plans, insurance companies, network rental and workers’ compensation services companies. The Company operates in three segments: Health Plan and Medical Services, Specialized Managed Care, and Workers’ Compensation. On January 1, 2012 the Company completed its acquisition of Children’s Mercy’s Family Health Partners, a Medicaid health plan. In May 2013, Aetna Inc announced it has completed its acquisition of Coventry Health Care, Inc.

Humana Company Profile

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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