Analyzing WellCare Health Plans (WCG) & Triple-S Management Corporation (GTS)

Triple-S Management Corporation (NYSE: GTS) and WellCare Health Plans (NYSE:WCG) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitabiliy, analyst recommendations, risk, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Triple-S Management Corporation and WellCare Health Plans, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Triple-S Management Corporation 0 0 0 0 N/A
WellCare Health Plans 0 10 3 0 2.23

WellCare Health Plans has a consensus target price of $144.64, suggesting a potential downside of 17.19%. Given WellCare Health Plans’ higher possible upside, analysts clearly believe WellCare Health Plans is more favorable than Triple-S Management Corporation.

Insider & Institutional Ownership

82.0% of Triple-S Management Corporation shares are owned by institutional investors. Comparatively, 99.4% of WellCare Health Plans shares are owned by institutional investors. 1.5% of Triple-S Management Corporation shares are owned by insiders. Comparatively, 0.5% of WellCare Health Plans shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Triple-S Management Corporation has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, WellCare Health Plans has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Triple-S Management Corporation 0.33% -0.44% -0.17%
WellCare Health Plans 1.85% 14.75% 4.37%

Earnings & Valuation

This table compares Triple-S Management Corporation and WellCare Health Plans’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Triple-S Management Corporation $2.95 billion 0.14 $15.77 million $0.40 41.30
WellCare Health Plans $14.65 billion 0.53 $656.20 million $6.08 28.73

WellCare Health Plans has higher revenue and earnings than Triple-S Management Corporation. WellCare Health Plans 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.

Summary

WellCare Health Plans beats Triple-S Management Corporation on 11 of the 12 factors compared between the two stocks.

About Triple-S Management Corporation

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.

About WellCare Health Plans

WellCare Health Plans, Inc. is a managed care company. The Company focuses on government-sponsored managed care services, primarily through Medicaid, Medicare Advantage (MA) and Medicare Prescription Drug Plans (PDPs), to families, children, seniors and individuals with medical needs. The Company operates through three segments: Medicaid Health Plans, Medicare Health Plans and Medicare PDPs. As of December 31, 2016, it served approximately 3.9 million members in 50 states and the District of Columbia. As of December 31, 2016, it operated Medicaid health plans in Arizona, Florida, Georgia, Hawaii, Illinois, Kentucky, Missouri, New Jersey, New York and South Carolina. As of December 31, 2016, it offered MA coordinated care plans (CCPs) in certain counties in Arizona, Arkansas, California, Connecticut, Florida, Georgia, Hawaii, Illinois, Kentucky, Louisiana, Mississippi, New Jersey, New York, South Carolina, Tennessee and Texas.

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