Cotiviti (NYSE: COTV) is one of 20 public companies in the “Medical Software & Technology Services” industry, but how does it contrast to its competitors? We will compare Cotiviti to related companies based on the strength of its institutional ownership, analyst recommendations, dividends, valuation, risk, profitability and earnings.

Risk and Volatility

Cotiviti has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Cotiviti’s competitors have a beta of 1.35, suggesting that their average share price is 35% more volatile than the S&P 500.

Earnings & Valuation

This table compares Cotiviti and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cotiviti $625.16 million $48.85 million 32.86
Cotiviti Competitors $413.57 million -$24.55 million 399.42

Cotiviti has higher revenue and earnings than its competitors. Cotiviti is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Cotiviti and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cotiviti 13.86% 13.61% 6.62%
Cotiviti Competitors -14.47% -7.27% 0.23%

Institutional & Insider Ownership

86.2% of Cotiviti shares are owned by institutional investors. Comparatively, 62.9% of shares of all “Medical Software & Technology Services” companies are owned by institutional investors. 15.8% of Cotiviti shares are owned by insiders. Comparatively, 26.5% of shares of all “Medical Software & Technology Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Cotiviti and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cotiviti 0 4 6 0 2.60
Cotiviti Competitors 88 436 831 13 2.56

Cotiviti currently has a consensus target price of $40.38, suggesting a potential upside of 26.69%. As a group, “Medical Software & Technology Services” companies have a potential upside of 18.98%. Given Cotiviti’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Cotiviti is more favorable than its competitors.

Summary

Cotiviti beats its competitors on 8 of the 13 factors compared.

Cotiviti 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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