Cotiviti Holdings (NASDAQ: COTV) and Veeva Systems (NYSE:VEEV) are both mid-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitabiliy, valuation and analyst recommendations.

Insider and Institutional Ownership

80.7% of Veeva Systems shares are held by institutional investors. 19.2% of Veeva Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Cotiviti Holdings and Veeva Systems’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cotiviti Holdings $642.58 million 5.44 $219.97 million N/A N/A
Veeva Systems $582.20 million 14.31 $141.37 million $0.63 94.65

Cotiviti Holdings has higher revenue and earnings than Veeva Systems.

Profitability

This table compares Cotiviti Holdings and Veeva Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cotiviti Holdings 16.85% 11.30% 5.40%
Veeva Systems 15.86% 12.28% 8.92%

Analyst Ratings

This is a breakdown of current recommendations for Cotiviti Holdings and Veeva Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cotiviti Holdings 0 4 9 0 2.69
Veeva Systems 0 6 7 0 2.54

Cotiviti Holdings currently has a consensus price target of $34.20, suggesting a potential downside of 10.17%. Veeva Systems has a consensus price target of $60.92, suggesting a potential upside of 2.16%. Given Veeva Systems’ higher possible upside, analysts clearly believe Veeva Systems is more favorable than Cotiviti Holdings.

Summary

Veeva Systems beats Cotiviti Holdings on 7 of the 12 factors compared between the two stocks.

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.

Veeva Systems Company Profile

Veeva Systems Inc. (Veeva) is a provider of cloud-based software solutions for the global life sciences industry. The Company offers solutions for a range of requirements within life sciences companies, including multichannel customer relationship management, regulated content and information management, master data management and customer data. The Company offers solutions to areas, including the Veeva CRM family of applications for multichannel customer relationship management to enable coordinated and personalized customer engagement through multiple touch points; Veeva Vault for regulated content management and information management solutions to enable the management of content-centric processes; the Veeva Network master data management solutions for the management of customer master and product master data, and Veeva’s data and data services offerings, including Veeva OpenData for customer reference data and Veeva KOL Data for data.

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