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 peers? We will compare Cotiviti to related companies based on the strength of its profitability, analyst recommendations, dividends, risk, earnings, institutional ownership and valuation.

Insider and Institutional 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, 24.5% of shares of all “Medical Software & Technology Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cotiviti 0 4 6 0 2.60
Cotiviti Competitors 87 436 830 13 2.56

Cotiviti currently has a consensus target price of $40.38, suggesting a potential upside of 25.74%. As a group, “Medical Software & Technology Services” companies have a potential upside of 20.54%. Given Cotiviti’s stronger consensus rating and higher probable upside, analysts clearly believe Cotiviti is more favorable than its peers.

Earnings and Valuation

This table compares Cotiviti and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cotiviti $625.16 million $48.85 million 33.10
Cotiviti Competitors $413.57 million -$24.55 million 389.82

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

Profitability

This table compares Cotiviti and its peers’ 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%

Risk & 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 peers have a beta of 1.02, suggesting that their average share price is 2% more volatile than the S&P 500.

Summary

Cotiviti beats its peers on 8 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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