Centene Corporation (NYSE: CNC) and Triple-S Management Corporation (NYSE:GTS) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Institutional & Insider Ownership

92.3% of Centene Corporation shares are held by institutional investors. Comparatively, 80.5% of Triple-S Management Corporation shares are held by institutional investors. 3.0% of Centene Corporation shares are held by insiders. Comparatively, 1.5% of Triple-S Management Corporation 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.

Analyst Recommendations

This is a breakdown of recent recommendations for Centene Corporation and Triple-S Management Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centene Corporation 1 4 12 0 2.65
Triple-S Management Corporation 0 1 0 0 2.00

Centene Corporation presently has a consensus target price of $89.80, suggesting a potential downside of 8.52%. Triple-S Management Corporation has a consensus target price of $20.00, suggesting a potential downside of 18.17%. Given Centene Corporation’s stronger consensus rating and higher possible upside, equities analysts plainly believe Centene Corporation is more favorable than Triple-S Management Corporation.

Profitability

This table compares Centene Corporation and Triple-S Management Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Centene Corporation 1.72% 14.62% 4.24%
Triple-S Management Corporation 0.63% 0.19% 0.07%

Earnings & Valuation

This table compares Centene Corporation and Triple-S Management Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Centene Corporation $43.65 billion 0.39 $2.19 billion $4.55 21.57
Triple-S Management Corporation $2.94 billion 0.20 $21.98 million $0.76 32.16

Centene Corporation has higher revenue and earnings than Triple-S Management Corporation. Centene Corporation 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.

Risk and Volatility

Centene Corporation has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Triple-S Management Corporation has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Summary

Centene Corporation beats Triple-S Management Corporation on 13 of the 14 factors compared between the two stocks.

About Centene Corporation

Centene Corporation is a healthcare company. The Company provides a portfolio of services to government sponsored healthcare programs, focusing on under-insured and uninsured individuals. The Company operates through two segments: Managed Care and Specialty Services. The Company’s Managed Care segment provides health plan coverage to individuals, through government subsidized programs, including Medicaid, the State Children’s Health Insurance Program (CHIP), Long Term Care, Foster Care, dual-eligible individuals (Duals) and the Supplemental Security Income Program, also known as the Aged, Blind or Disabled Program (ABD), Medicare, and Health Insurance Marketplace. Its Specialty Services segment consists of its specialty companies offering a range of healthcare services and products to state programs, correctional facilities, healthcare organizations, employer groups and other commercial organizations, as well as to its own subsidiaries.

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.

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