Cotiviti Holdings (NASDAQ: COTV) and Omnicell (NASDAQ:OMCL) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for Cotiviti Holdings and Omnicell, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cotiviti Holdings 0 3 5 0 2.63
Omnicell 0 1 6 0 2.86

Cotiviti Holdings presently has a consensus price target of $41.20, suggesting a potential upside of 15.70%. Omnicell has a consensus price target of $53.43, suggesting a potential upside of 5.17%. Given Cotiviti Holdings’ higher probable upside, equities research analysts plainly believe Cotiviti Holdings is more favorable than Omnicell.

Earnings and Valuation

This table compares Cotiviti Holdings and Omnicell’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cotiviti Holdings $651.90 million 5.03 $222.12 million N/A N/A
Omnicell $680.15 million 2.80 $42.68 million ($0.22) -230.91

Cotiviti Holdings has higher revenue, but lower earnings than Omnicell.

Profitability

This table compares Cotiviti Holdings and Omnicell’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cotiviti Holdings 12.58% 8.55% 4.19%
Omnicell -1.14% 0.41% 0.19%

Summary

Cotiviti Holdings beats Omnicell on 6 of the 9 factors compared between the two stocks.

About Cotiviti Holdings

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.

About Omnicell

Omnicell, Inc. provides automation and business analytics software solutions for patient-centric medication and supply management across the entire healthcare continuum, from the acute care hospital setting to post-acute skilled nursing and long-term care facilities to the home. It operates through two segments: Automation and Analytics, and Medication Adherence. The Automation and Analytics segment is engaged in the design, manufacturing, selling and servicing of medication and supply dispensing systems, pharmacy inventory management systems and related software. The Medication Adherence segment includes the development, manufacturing and selling of consumable medication blister cards, packaging equipment, medication synchronization platform, and ancillary products and services. Its products are used to manage medication administration outside of the hospital setting and include medication adherence products sold under the brand name MTS, Surgichem, SureMed and the Omnicell brand.

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