Cotiviti (COTV) vs. The Competition Critical Review

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

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%

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

Earnings & Valuation

This table compares Cotiviti and its peers gross 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.

Volatility & Risk

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.

Analyst Ratings

This is a summary of recent 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 presently has a consensus target price of $40.38, indicating 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, research analysts plainly believe Cotiviti is more favorable than its peers.

Summary

Cotiviti beats its peers on 8 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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