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

Insider and Institutional Ownership

89.0% of Cotiviti shares are held by institutional investors. Comparatively, 66.5% of shares of all “Medical Software & Technology Services” companies are held by institutional investors. 15.8% of Cotiviti shares are held by insiders. Comparatively, 23.7% of shares of all “Medical Software & Technology Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

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 -14.69% -8.51% -0.29%

Analyst Ratings

This is a breakdown of recent recommendations for Cotiviti and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cotiviti 0 3 6 0 2.67
Cotiviti Competitors 84 434 821 13 2.56

Cotiviti presently has a consensus target price of $41.29, suggesting a potential upside of 29.95%. As a group, “Medical Software & Technology Services” companies have a potential upside of 22.09%. Given Cotiviti’s stronger consensus rating and higher possible upside, analysts plainly believe Cotiviti is more favorable than its competitors.

Risk and Volatility

Cotiviti has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Cotiviti’s competitors have a beta of 1.19, suggesting that their average stock price is 19% more volatile than the S&P 500.

Valuation and Earnings

This table compares Cotiviti and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Cotiviti $625.16 million $48.85 million 32.75
Cotiviti Competitors $413.57 million -$24.55 million 382.94

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.

Summary

Cotiviti beats its competitors on 9 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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