Critical Review: Magellan Health (NASDAQ:MGLN) & OpGen (OPGN)

Magellan Health (NASDAQ: MGLN) and OpGen (NASDAQ:OPGN) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Analyst Ratings

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This is a summary of recent recommendations for Magellan Health and OpGen, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Magellan Health 0 1 3 0 2.75
OpGen 0 0 2 0 3.00

Magellan Health currently has a consensus target price of $90.67, suggesting a potential downside of 16.44%. OpGen has a consensus target price of $9.00, suggesting a potential upside of 389.13%. Given OpGen’s stronger consensus rating and higher possible upside, analysts plainly believe OpGen is more favorable than Magellan Health.

Profitability

This table compares Magellan Health and OpGen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Magellan Health 1.89% 10.86% 4.91%
OpGen -479.38% -1,719.89% -228.38%

Risk and Volatility

Magellan Health has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, OpGen has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Valuation and Earnings

This table compares Magellan Health and OpGen’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Magellan Health $5.84 billion 0.46 $110.20 million $5.50 19.73
OpGen $3.21 million 3.03 -$15.41 million ($9.78) -0.19

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

Insider and Institutional Ownership

97.3% of Magellan Health shares are held by institutional investors. 3.6% of Magellan Health shares are held by insiders. Comparatively, 31.8% of OpGen shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Magellan Health beats OpGen on 9 of the 14 factors compared between the two stocks.

Magellan Health Company Profile

Magellan Health, Inc. provides healthcare management services in the United States. It operates in Healthcare and Pharmacy Management segments. The Healthcare segment offers carve-out management services for behavioral health; employee assistance plans (EAP); and other areas of specialty healthcare, including diagnostic imaging, musculoskeletal management, cardiac, and physical medicine for health plans, care organizations, and employers. It also contracts with local, state, and federal governmental agencies to provide services to recipients under Medicaid, Medicare, and other government programs, such as behavioral health and EAP, as well as healthcare management and long term support services through its network of medical and behavioral health professionals, clinics, hospitals, nursing facilities, home care agencies, and ancillary service providers. The Pharmacy Management segment comprises products and solutions that provide clinical and financial management of pharmaceuticals paid under medical and pharmacy benefit programs. This segment offers pharmacy benefit management services, pharmacy benefit administration for state Medicaid and other government sponsored programs, pharmaceutical dispensing services, clinical and formulary management programs, medical pharmacy management programs, and programs for the integrated management of specialty drugs that treat complex conditions. The company provides services to health plans and other managed care organizations, employers, labor unions, various military and governmental agencies, and third party administrators. Magellan Health, Inc. was founded in 1969 and is headquartered in Scottsdale, Arizona.

OpGen Company Profile

OpGen, Inc. (OpGen) is a precision medicine company using molecular diagnostics and informatics to combat infectious disease. The Company is engaged in developing molecular information solutions to combat infectious disease in global healthcare settings, helping to guide clinicians with information about life threatening infections, managing patient outcomes, and the spread of infections caused by multidrug-resistant microorganisms. Its deoxyribonucleic acid (DNA) tests and bioinformatics address the threat of anti-biotic resistance by helping physicians and healthcare providers manage patient care decisions and protect the hospital biome through customized screening and surveillance solutions. It is working to deliver its molecular information solution to a global network of customers and partners. It is also working to provide precise diagnostic information powered by pathogen surveillance data. The Company’s high-resolution DNA tests are marketed under the Acuitas trade name.

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