Cerner Corporation (NASDAQ: CERN) is one of 82 publicly-traded companies in the “Advanced Medical Equipment & Technology” industry, but how does it weigh in compared to its rivals? We will compare Cerner Corporation to related businesses based on the strength of its earnings, profitability, valuation, analyst recommendations, dividends, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and target prices for Cerner Corporation and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cerner Corporation 0 12 6 1 2.42
Cerner Corporation Competitors 249 1806 3232 105 2.59

Cerner Corporation currently has a consensus target price of $66.88, suggesting a potential downside of 6.85%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 20.23%. Given Cerner Corporation’s higher possible upside, equities analysts plainly believe Cerner Corporation is more favorable than its rivals.

Valuation and Earnings

This table compares Cerner Corporation and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cerner Corporation $4.90 billion $1.37 billion 36.26
Cerner Corporation Competitors $2.02 billion $430.74 million -69.45

Cerner Corporation has higher revenue and earnings than its rivals. Cerner Corporation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Cerner Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cerner Corporation 13.47% 18.18% 12.93%
Cerner Corporation Competitors -327.88% -35.27% -12.41%

Volatility & Risk

Cerner Corporation has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Cerner Corporation’s rivals have a beta of 0.89, suggesting that their average stock price is 11% less volatile than the S&P 500.

Institutional and Insider Ownership

78.9% of Cerner Corporation shares are owned by institutional investors. Comparatively, 53.2% of shares of all “Advanced Medical Equipment & Technology” companies are owned by institutional investors. 13.2% of Cerner Corporation shares are owned by insiders. Comparatively, 17.2% of shares of all “Advanced Medical Equipment & Technology” companies are owned 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.

Summary

Cerner Corporation beats its rivals on 10 of the 13 factors compared.

Cerner Corporation Company Profile

Cerner Corporation (Cerner) is a supplier of healthcare information technology (HCIT). The Company offers a range of intelligent solutions and services that support the clinical, financial and operational needs of organizations of all sizes. The Company’s segments include Domestic and Global. The Domestic segment includes revenue contributions and expenditures associated with business activity in the United States. The Global segment includes revenue contributions and expenditures linked to business activity in Aruba, Australia, Austria, the Bahamas, Belgium, Bermuda, Brazil, Canada, Cayman Islands, Chile, Denmark, Egypt, England, Finland, France, Germany, Guam, India, Ireland, Kuwait, Luxembourg, Malaysia, Mexico, the Netherlands, Norway, Portugal, Qatar, Romania, Saudi Arabia, Singapore, Slovakia, Spain, Sweden, Switzerland and the United Arab Emirates. The Company’s solutions are offered on the unified Cerner Millennium architecture and on the HealtheIntent cloud-based platform.

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