Analyzing Certara (CERT) and Its Peers

Certara (NASDAQ:CERT) is one of 93 public companies in the “Healthcare Technology” industry, but how does it weigh in compared to its rivals? We will compare Certara to similar businesses based on the strength of its earnings, institutional ownership, analyst recommendations, profitability, valuation, dividends and risk.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Certara	$418.84 million	-$1.60 million	-28.88
Certara Competitors	$341.86 million	-$24.15 million	12.78

Certara has higher revenue and earnings than its rivals. Certara 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 & Risk

Certara has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Certara’s rivals have a beta of 1.11, meaning that their average share price is 11% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Certara	-16.14%	3.36%	2.31%
Certara Competitors	-754.24%	-30.01%	-15.66%

Insider & Institutional Ownership

74.0% of Certara shares are held by institutional investors. Comparatively, 42.4% of shares of all “Healthcare Technology” companies are held by institutional investors. 1.1% of Certara shares are held by company insiders. Comparatively, 16.2% of shares of all “Healthcare Technology” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Certara and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Certara	1	7	4	1	2.38
Certara Competitors	453	1534	2743	89	2.51

Certara presently has a consensus price target of $9.92, indicating a potential downside of 18.25%. As a group, “Healthcare Technology” companies have a potential upside of 43.58%. Given Certara’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Certara has less favorable growth aspects than its rivals.

Summary

Certara beats its rivals on 8 of the 13 factors compared.

About Certara

Certara provides software and consulting services that support the development and use of medicines. Its biosimulation tools help pharmaceutical and biotechnology companies model how drugs behave in the body, assess potential treatment outcomes, and inform decisions during drug research and development. The company’s offerings include software for pharmacokinetic and pharmacodynamic modeling, clinical trial simulation, and drug development analysis. Certara also provides scientific and regulatory consulting, including support for regulatory submissions and strategies that use modeling and simulation to guide development programs.