Analyzing Covance (CVD) and Its Peers

Covance (NYSE: CVD) is one of 189 public companies in the “Biotechnology & Medical Research” industry, but how does it compare to its competitors? We will compare Covance to similar companies based on the strength of its risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Earnings and Valuation

This table compares Covance and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Covance N/A N/A 33.05
Covance Competitors $217.40 million -$39.57 million -55.60

Covance’s competitors have higher revenue, but lower earnings than Covance. Covance is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Covance and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Covance 7.70% 12.64% 8.17%
Covance Competitors -4,587.50% -472.71% -43.01%

Analyst Recommendations

This is a breakdown of recent recommendations for Covance and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Covance 0 0 0 0 N/A
Covance Competitors 566 2492 6716 134 2.65

As a group, “Biotechnology & Medical Research” companies have a potential upside of 14.24%. Given Covance’s competitors higher possible upside, analysts clearly believe Covance has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

48.1% of shares of all “Biotechnology & Medical Research” companies are owned by institutional investors. 14.5% of shares of all “Biotechnology & Medical Research” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Covance Company Profile

Covance Inc. is engaged in drug development services. The Company provides a range of early-stage and late-stage product development services to the pharmaceutical and biotechnology industries. The Company also provides laboratory testing services to the chemical, agrochemical and food industries. The Company operates in two segments: early development services, and late-stage development services. The early development services include lead optimization services, preclinical services and clinical pharmacology services. The late-stage development services include central laboratory, Phase II-IV clinical development, and market access services.

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