Complete Genomics (NASDAQ: GNOM) and Cotiviti (NYSE:COTV) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Insider and Institutional Ownership

86.2% of Cotiviti shares are owned by institutional investors. 15.8% of Cotiviti shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Complete Genomics and Cotiviti’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Complete Genomics N/A N/A N/A
Cotiviti 13.86% 13.61% 6.62%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Complete Genomics and Cotiviti, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Complete Genomics 0 0 0 0 N/A
Cotiviti 0 4 6 0 2.60

Cotiviti has a consensus target price of $40.38, indicating a potential upside of 21.32%. Given Cotiviti’s higher possible upside, analysts plainly believe Cotiviti is more favorable than Complete Genomics.

Earnings and Valuation

This table compares Complete Genomics and Cotiviti’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Complete Genomics N/A N/A N/A ($2.35) -1.34
Cotiviti $625.16 million 4.92 $48.85 million $0.97 34.31

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

Summary

Cotiviti beats Complete Genomics on 9 of the 9 factors compared between the two stocks.

About Complete Genomics

Complete Genomics, Inc. is a life sciences company that has developed and commercialized a deoxyribonucleic acid (DNA) sequencing platform. Its complete genomics analysis platform (CGA) Platform, combines its human genome sequencing technology with its advanced informatics and data management software and its end-to-end, outsourced service model to provide its customers with data that is ready to be used for genome-based research. Its genome sequencing center combines a high-throughput sample preparation facility, a collection of its high-throughput sequencing instruments and a large- scale data center. Its customers include some of the global academic and government research centers and biopharmaceutical companies. Effective March 18, 2013, BGI-Shenzhen announced that through its wholly-owned subsidiary, Beta Acquisition Corporation, it has completed the acquisition of the Company.

About Cotiviti

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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