Cotiviti (NYSE:COTV) and FleetCor Technologies (NYSE:FLT) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Earnings and Valuation

This table compares Cotiviti and FleetCor Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cotiviti $678.66 million 6.18 $138.20 million $1.42 31.51
FleetCor Technologies $2.25 billion 8.87 $740.20 million $7.88 28.64

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

Insider and Institutional Ownership

90.4% of Cotiviti shares are held by institutional investors. Comparatively, 98.1% of FleetCor Technologies shares are held by institutional investors. 7.5% of Cotiviti shares are held by company insiders. Comparatively, 5.4% of FleetCor Technologies shares are held by company 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.

Analyst Recommendations

This is a summary of current ratings for Cotiviti and FleetCor Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cotiviti 0 11 0 0 2.00
FleetCor Technologies 0 1 9 0 2.90

Cotiviti presently has a consensus target price of $35.08, suggesting a potential downside of 21.58%. FleetCor Technologies has a consensus target price of $231.56, suggesting a potential upside of 2.60%. Given FleetCor Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe FleetCor Technologies is more favorable than Cotiviti.

Profitability

This table compares Cotiviti and FleetCor Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cotiviti 21.49% 12.44% 6.65%
FleetCor Technologies 35.50% 23.23% 7.32%

Risk & Volatility

Cotiviti has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, FleetCor Technologies has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.

Summary

FleetCor Technologies beats Cotiviti on 12 of the 14 factors compared between the two stocks.

About Cotiviti

Cotiviti Holdings, Inc., through its subsidiaries, provides analytics-driven payment accuracy and spend management solutions primarily for the healthcare sector in the United States, Canada, the United Kingdom, and India. It operates through two segments, Healthcare, and Global Retail and Other. The company offers prospective claims accuracy solutions that enable healthcare clients identify and address claim discrepancies immediately following claim adjudication and before a claim is paid to a healthcare provider; and retrospective claims accuracy solutions that enable health insurers identify and resolve payment inaccuracies after a claim has been paid to a healthcare provider. It also provides analytics and support services, including anti-fraud, waste, and abuse analytics to identify abnormal patterns in coding and billing practices; surveillance and longitudinal analytics; and claims history analytics to identify areas for direct interaction, as well as to identify policy and program changes that can enhance future payment accuracy. The company was formerly known as Connolly Superholdings, Inc. and changed its name to Cotiviti Holdings, Inc. in September 2015. Cotiviti Holdings, Inc. was founded in 1979 and is headquartered in Atlanta, Georgia.

About FleetCor Technologies

FleetCor Technologies, Inc. provides commercial payment solutions in North America, Latin America, Europe, and Australasia. The company offers fuel payment solutions to businesses and government entities that operate vehicle fleets, as well as to oil and leasing companies, and fuel marketers. Its fuel payment products are in the form of plastic cards, electronic RFID tags, and paper vouchers to purchase fuel, oil, vehicle maintenance supplies and services, and building supplies. The company also provides lodging payment solutions to businesses that have employees who travel overnight for work purposes. In addition, it offers electronic toll and parking payments products to businesses and consumers in the form of RFID tags affixed to vehicles' windshields; and prepaid paper vouchers as a means of payment on toll roads. Further, the company provides corporate payments solutions with vertical-specific applications, which enable its customers to manage and control electronic payments across their enterprise, optimize corporate spending, and offer innovative services that enhance employee efficiency and customer loyalty. Its primary corporate payments products include virtual cards, purchasing cards, travel and entertainment cards, payroll cards, and cross-border payment facilitation. Additionally, it offers gift card product management and processing services, such as card design, production and packaging, delivery and fulfillment, card and account management, transaction processing, promotion development and management, Website design and hosting, program analytics, and card distribution channel management. The company also provides vehicle maintenance, employee benefit payment, and long haul transportation-related services. The company markets its products and services through field sales, telesales, direct marketing, point-of-sale marketing, and the Internet. FleetCor Technologies, Inc. was founded in 1986 and is headquartered in Peachtree Corners, Georgia.

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