Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, small-cap health insurer Molina Healthcare (NYSE:MOH) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Molina's business and see what CAPS investors are saying about the stock right now.

Molina facts

Headquarters (Founded)

Long Beach, Calif. (1980)

Market Cap

$489 million

Industry

Managed health care

Trailing-12-Month Revenue

$3.4 billion

Management

Chairman/CEO Dr. Joseph Molina
CFO John Molina

Return on Equity (Average, Past 3 Years)

12.2%

Cash/Debt

$598.2 million/$156.5 million

Competitors

UnitedHealth (NYSE:UNH)
Aetna (NYSE:AET)
WellPoint (NYSE:WLP)

CAPS Members Bullish on MOH Also Bullish on

Johnson & Johnson (NYSE:JNJ)
American Oriental Bioengineering (NYSE:AOB)

CAPS Members Bearish on MOH Also Bearish on

First Solar (NASDAQ:FSLR)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 92% of the 143 members who have rated Molina believe the stock will outperform the S&P 500 going forward. These bulls include mrindependent and "All-Star" pick compiler AllStarPortfolio, both of whom are ranked in the top 15% of our community.

Two months ago, mrindependent informed Fools that Molina "is a managed care organization providing services to persons eligible for government sponsored programs such as medicare." Our CAPS member continues: "This company is selling for book value and it has loads of cash. Although there is much uncertainty in this industry, this bargain is too good to pass up."

In a pitch from late last month, AllStarPortfolio (using a pick and pitch from UltraLong) expands on Molina as a tantalizing takeover target. Here's an excerpt:

Molina has been run as a profitable company for years now with a huge cash reserve of 432 million dollars once you factor out the debt. … That is downright dirty cheap right there!

Molina maintains a cost ratio of 93% in [California] which basically means it's not profitable there yet. Representing such a large chunk of their revenue, this is where I see a buyout offer making sense from Wellpoint.

WellPoint also has a massive presence in California, known for their Blue Cross and Blue Shield health plans. They operate out of 46 states and their medical cost ratio is among the best in the industry. More importantly, [WellPoint] is also incredibly smart with their money, and sitting on such a large pile of cash ($8.2 billion after debt), they would see tremendous upside in acquiring Molina. …

If I had to take a stab at it, I would place the price it would take to acquire Molina at $42 per share.

What do you think about Molina, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. UnitedHealth and WellPoint are Motley Fool Inside Value picks. UnitedHealth is also a selection of Stock Advisor. AOB is a Motley Fool Hidden Gems choice, Johnson & Johnson is an Income Investor pick, and First Solar is a recommendation of Rule Breakers. The Fool owns shares of UnitedHealth. The Fool's disclosure policy always gets a perfect score.