Catamaran Corp (NASDAQ: CTRX) and Cigna Corporation (NYSE:CI) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Institutional & Insider Ownership

88.0% of Cigna Corporation shares are owned by institutional investors. 1.3% of Cigna Corporation shares are owned 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.

Profitability

This table compares Catamaran Corp and Cigna Corporation’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%
Cigna Corporation 5.55% 17.40% 4.04%

Valuation and Earnings

This table compares Catamaran Corp and Cigna Corporation’s gross revenue, earnings per share (EPS) 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
Cigna Corporation $40.53 billion 1.14 $4.21 billion $8.68 21.10

Cigna Corporation has higher revenue and earnings than Catamaran Corp.

Dividends

Cigna Corporation pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Catamaran Corp does not pay a dividend. Cigna Corporation pays out 0.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Catamaran Corp and Cigna Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Catamaran Corp 0 0 0 0 N/A
Cigna Corporation 0 2 14 0 2.88

Cigna Corporation has a consensus target price of $180.00, indicating a potential downside of 1.73%. Given Cigna Corporation’s higher possible upside, analysts plainly believe Cigna Corporation is more favorable than Catamaran Corp.

Summary

Cigna Corporation beats Catamaran Corp on 8 of the 10 factors compared between the two stocks.

Catamaran Corp Company Profile

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.

Cigna Corporation Company Profile

Cigna Corporation (Cigna), together with its subsidiaries, is a health services company. The Company offers medical, dental, disability, life and accident insurance and related products and services. The Company’s segments include Global Health Care, Global Supplemental Benefits, Group Disability and Life, and Other Operations and Corporate. Its Global Health Care segment aggregates the commercial and Government operating segments. Its commercial operating segment encompasses the United States commercial and certain international healthcare businesses serving employers and their employees, other groups, and individuals. Its Global Supplemental Benefits segment offers supplemental health, life and accident insurance products in selected international markets and in the United States. Its Group Disability and Life segment provides group long-term and short-term disability insurance, group life insurance, accident and specialty insurance and related services.

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