Critical Review: NeueHealth (NYSE:NEUE) & Molina Healthcare (NYSE:MOH)

NeueHealth (NYSE:NEUEGet Free Report) and Molina Healthcare (NYSE:MOHGet Free Report) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Insider and Institutional Ownership

63.9% of NeueHealth shares are owned by institutional investors. Comparatively, 98.5% of Molina Healthcare shares are owned by institutional investors. 64.3% of NeueHealth shares are owned by company insiders. Comparatively, 1.1% of Molina Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for NeueHealth and Molina Healthcare, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NeueHealth 0 1 0 0 2.00
Molina Healthcare 1 4 6 1 2.58

NeueHealth presently has a consensus price target of $8.00, indicating a potential upside of 55.95%. Molina Healthcare has a consensus price target of $405.18, indicating a potential upside of 38.12%. Given NeueHealth’s higher possible upside, equities analysts clearly believe NeueHealth is more favorable than Molina Healthcare.

Profitability

This table compares NeueHealth and Molina Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NeueHealth -89.78% -5.62% 2.57%
Molina Healthcare 2.99% 29.86% 8.21%

Earnings and Valuation

This table compares NeueHealth and Molina Healthcare’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NeueHealth $1.16 billion 0.04 -$1.15 billion ($130.73) -0.04
Molina Healthcare $34.07 billion 0.50 $1.09 billion $18.43 15.92

Molina Healthcare has higher revenue and earnings than NeueHealth. NeueHealth is trading at a lower price-to-earnings ratio than Molina Healthcare, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

NeueHealth has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Molina Healthcare has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Summary

Molina Healthcare beats NeueHealth on 12 of the 15 factors compared between the two stocks.

About NeueHealth

(Get Free Report)

NeueHealth, Inc., a healthcare company, provides various healthcare services for health consumers, providers, and payors in the United States. It operates through two segments: NeueCare and NeueSolutions. The NeueCare segment delivers healthcare services to ACA marketplace, medicare, and medicaid through owned and affiliated clinics. It operates risk-bearing clinics under the Centrum Health, AssociatesMD, and Premier Medical Associates brand names. The company also offers integrated system care solution, such as embedded pharmacy, laboratory, radiology, and population health focused specialty services; and chronic care management, transitions of care, and referral management services. The NeueSolutions segment enables providers and medical groups to succeed in performance-based arrangements; and participates in the centers for healthcare access to medicare beneficiaries. The company was formerly known as Bright Health Group, Inc. and changed its name to NeueHealth, Inc. in January 2024. NeueHealth, Inc. was incorporated in 2015 and is headquartered in Doral, Florida.

About Molina Healthcare

(Get Free Report)

Molina Healthcare, Inc. provides managed healthcare services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces. It operates in four segments: Medicaid, Medicare, Marketplace, and Other. The company served in across 19 states. The company was founded in 1980 and is headquartered in Long Beach, California.

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