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

Insider and Institutional Ownership

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Cotiviti and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cotiviti 0 3 6 0 2.67
Cotiviti Competitors 85 434 822 13 2.56

Cotiviti presently has a consensus price target of $41.29, indicating a potential upside of 27.31%. As a group, “Medical Software & Technology Services” companies have a potential downside of 96.51%. Given Cotiviti’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Cotiviti is more favorable than its rivals.

Profitability

This table compares Cotiviti and its rivals’ 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 -14.57% -7.27% 0.22%

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Cotiviti $625.16 million $48.85 million 33.43
Cotiviti Competitors $413.57 million -$24.55 million 18,153.34

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

Volatility and Risk

Cotiviti has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Cotiviti’s rivals have a beta of 1.03, meaning that their average share price is 3% more volatile than the S&P 500.

Summary

Cotiviti beats its rivals on 9 of the 13 factors compared.

About Cotiviti

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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