Inovalon Holdings (NASDAQ: INOV) is one of 196 public companies in the “IT Services & Consulting” industry, but how does it contrast to its peers? We will compare Inovalon Holdings to related businesses based on the strength of its profitability, risk, earnings, valuation, analyst recommendations, institutional ownership and dividends.

Earnings & Valuation

This table compares Inovalon Holdings and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Inovalon Holdings $419.99 million $67.35 million 154.10
Inovalon Holdings Competitors $2.14 billion $366.36 million 15.67

Inovalon Holdings’ peers have higher revenue and earnings than Inovalon Holdings. Inovalon Holdings is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Inovalon Holdings and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inovalon Holdings 1 6 1 0 2.00
Inovalon Holdings Competitors 667 4377 7381 165 2.56

Inovalon Holdings currently has a consensus target price of $14.00, suggesting a potential downside of 17.40%. As a group, “IT Services & Consulting” companies have a potential upside of 1.45%. Given Inovalon Holdings’ peers stronger consensus rating and higher probable upside, analysts plainly believe Inovalon Holdings has less favorable growth aspects than its peers.

Volatility and Risk

Inovalon Holdings has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, Inovalon Holdings’ peers have a beta of 1.27, meaning that their average share price is 27% more volatile than the S&P 500.

Profitability

This table compares Inovalon Holdings and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inovalon Holdings 4.13% 5.17% 3.38%
Inovalon Holdings Competitors -22.21% -63.19% -4.52%

Insider & Institutional Ownership

28.7% of Inovalon Holdings shares are owned by institutional investors. Comparatively, 61.8% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 48.3% of Inovalon Holdings shares are owned by insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Inovalon Holdings peers beat Inovalon Holdings on 7 of the 13 factors compared.

Inovalon Holdings Company Profile

Inovalon Holdings, Inc. (Inovalon) is a technology company. The Company provides cloud-based platforms empowering a data-driven transformation from volume-based to value-based models to the healthcare industry. Leveraging large-scale data interconnectivity capabilities, unparalleled proprietary data sets, advanced analytics, data-driven intervention systems, and subject matter expertise, Inovalon enables the assessment and improvement of clinical and quality outcomes and financial performance across the healthcare ecosystem. The Company serves clients across the healthcare industry, which includes health plans and provider organizations, pharmaceutical, medical device, and diagnostics companies. It provides technology that supports approximately 500 healthcare organizations. Inovalon’s platforms are informed by data pertaining to more than 856,000 physicians, 375,000 clinical facilities, and more than 158 million Americans.

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