Cotiviti (NYSE: COTV) and Press Ganey (NYSE:PGND) are both mid-cap medical software & technology services companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Profitability

This table compares Cotiviti and Press Ganey’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cotiviti 13.86% 13.61% 6.62%
Press Ganey 8.69% 5.46% 3.34%

Insider & Institutional Ownership

86.2% of Cotiviti shares are held by institutional investors. Comparatively, 91.9% of Press Ganey shares are held by institutional investors. 15.8% of Cotiviti shares are held by insiders. Comparatively, 5.1% of Press Ganey shares are held 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.

Valuation & Earnings

This table compares Cotiviti and Press Ganey’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cotiviti $625.16 million 4.83 $48.85 million $0.98 33.35
Press Ganey N/A N/A N/A $0.51 79.41

Cotiviti has higher revenue and earnings than Press Ganey. Cotiviti is trading at a lower price-to-earnings ratio than Press Ganey, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Cotiviti and Press Ganey, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cotiviti 0 3 6 0 2.67
Press Ganey 0 0 0 0 N/A

Cotiviti presently has a consensus target price of $41.29, indicating a potential upside of 26.33%. Given Cotiviti’s higher possible upside, research analysts plainly believe Cotiviti is more favorable than Press Ganey.

Summary

Cotiviti beats Press Ganey on 8 of the 9 factors compared between the two stocks.

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.

Press Ganey Company Profile

Press Ganey Holdings, Inc. is a provider of patient experience and caregiver measurement, performance analytics and strategic advisory solutions for healthcare organizations. The Company provides its clients with a digital platform that captures the perspectives of patients, physicians, nurses and other healthcare employees and enables its clients to benchmark, analyze and manage the patient and caregiver experience. Its solutions include Patient Experience Solutions, which include Patient experience measurement, insights and advisory services; Caregiver Engagement Solutions, which include Physician, nurse and employee engagement measurement, insights and advisory services; Clinical and Quality Solutions, which include nursing quality indicators, patient reported outcome measures, core measures and eMeasures, and Consulting Solutions, which include patient safety and care reliability, patient experience improvement, process flow, advanced analytics and insights and cultural alignment.

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