Castlight Health, inc. (NYSE: CSLT) and Cotiviti Holdings (NASDAQ:COTV) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Institutional & Insider Ownership

41.3% of Castlight Health, inc. shares are owned by institutional investors. 24.4% of Castlight Health, inc. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Castlight Health, inc. and Cotiviti Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Castlight Health, inc. 1 4 2 0 2.14
Cotiviti Holdings 0 3 5 0 2.63

Castlight Health, inc. currently has a consensus target price of $4.63, indicating a potential upside of 26.71%. Cotiviti Holdings has a consensus target price of $41.20, indicating a potential upside of 17.98%. Given Castlight Health, inc.’s higher probable upside, research analysts clearly believe Castlight Health, inc. is more favorable than Cotiviti Holdings.

Valuation & Earnings

This table compares Castlight Health, inc. and Cotiviti Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Castlight Health, inc. $115.24 million 4.17 -$48.77 million ($0.45) -8.11
Cotiviti Holdings $651.90 million 4.94 $222.12 million N/A N/A

Cotiviti Holdings has higher revenue and earnings than Castlight Health, inc..

Profitability

This table compares Castlight Health, inc. and Cotiviti Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Castlight Health, inc. -42.54% -36.30% -24.42%
Cotiviti Holdings 12.58% 8.55% 4.19%

Summary

Cotiviti Holdings beats Castlight Health, inc. on 8 of the 11 factors compared between the two stocks.

Castlight Health, inc. Company Profile

Castlight Health, Inc. offers a health benefits platform that engages employees to make healthcare decisions, and enables employers to communicate and measure their benefit programs. The Company operates through cloud-based products segment. Its technology offering aggregates data and applies analytics to make healthcare data transparent. Its products deliver employee engagement and enable employers to integrate benefit programs into a single platform available to employees and their families. Its health benefits platform engages external data and its substantial user base to provide a single, end-to-end solution that engages employees through personalized and relevant communications. Its offering provides employers the opportunity to communicate, measure, and get value out of their benefits and programs on a real-time basis. It offers cross-sell products, such as Castlight Action, Castlight Pharmacy, Castlight Dental, Castlight Elevate, Castlight Protect and Castlight Rewards.

Cotiviti Holdings Company Profile

Cotiviti Holdings, Inc. is a provider of analytics-driven payment accuracy solutions. The Company focuses primarily on the healthcare sector. The Company operates through two segments: Healthcare, and Global Retail and Other. Through its Healthcare segment, the Company offers prospective and retrospective claims accuracy solutions to healthcare payers in the United States. The Company also provides analytics-based solutions unrelated to its healthcare payment accuracy solutions in the United States. Through its Global Retail and Other segment, the Company provides retrospective claims accuracy solutions to retailers primarily in the United States, Canada and the United Kingdom, as well as solutions that manage payment networks for a range of clients. The Company leverages its technology platform, configurable analytics, information assets and expertise in healthcare reimbursement to help its clients develop their claims payment accuracy.

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