Cotiviti (COTV) vs. OmniComm Systems (OMCM) Financial Analysis

Cotiviti (NYSE:COTV) and OmniComm Systems (OTCMKTS:OMCM) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Cotiviti and OmniComm Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cotiviti 0 11 0 0 2.00
OmniComm Systems 0 0 0 0 N/A

Cotiviti presently has a consensus target price of $35.08, indicating a potential downside of 21.58%. Given Cotiviti’s higher probable upside, research analysts clearly believe Cotiviti is more favorable than OmniComm Systems.

Earnings & Valuation

This table compares Cotiviti and OmniComm Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cotiviti $678.66 million 6.18 $138.20 million $1.42 31.51
OmniComm Systems $26.98 million 2.36 $2.96 million N/A N/A

Cotiviti has higher revenue and earnings than OmniComm Systems.

Insider and Institutional Ownership

90.4% of Cotiviti shares are held by institutional investors. 7.5% of Cotiviti shares are held by company insiders. Comparatively, 48.5% of OmniComm Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Cotiviti has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, OmniComm Systems has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.

Profitability

This table compares Cotiviti and OmniComm Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cotiviti 21.49% 12.44% 6.65%
OmniComm Systems 8.66% -14.23% 25.40%

Summary

Cotiviti beats OmniComm Systems on 8 of the 11 factors compared between the two stocks.

About Cotiviti

Cotiviti Holdings, Inc., through its subsidiaries, provides analytics-driven payment accuracy and spend management solutions primarily for the healthcare sector in the United States, Canada, the United Kingdom, and India. It operates through two segments, Healthcare, and Global Retail and Other. The company offers prospective claims accuracy solutions that enable healthcare clients identify and address claim discrepancies immediately following claim adjudication and before a claim is paid to a healthcare provider; and retrospective claims accuracy solutions that enable health insurers identify and resolve payment inaccuracies after a claim has been paid to a healthcare provider. It also provides analytics and support services, including anti-fraud, waste, and abuse analytics to identify abnormal patterns in coding and billing practices; surveillance and longitudinal analytics; and claims history analytics to identify areas for direct interaction, as well as to identify policy and program changes that can enhance future payment accuracy. The company was formerly known as Connolly Superholdings, Inc. and changed its name to Cotiviti Holdings, Inc. in September 2015. Cotiviti Holdings, Inc. was founded in 1979 and is headquartered in Atlanta, Georgia.

About OmniComm Systems

OmniComm Systems, Inc. operates as a healthcare technology company worldwide. The company engages in the provision of Web-based electronic data capture (EDC) and eClinical software and services for pharmaceutical and biotechnology companies, clinical research organizations (CROs), and other clinical trial sponsors. It offers TrialMaster, which allows organizations conducting clinical trials to collect and manage the data over the Internet; TrialOne Phase I Clinic Automation, a software application suite that provides clinical trial site sponsors, study investigators, and study monitors with various tools designed to make the overall Phase I clinic operation; and IRTMaster, which offers interactive response technology in support of the randomization process in clinical trials. The company also provides eClinical Suite that comprises a set of tools for collecting and managing clinical data, including EDC for real-time entry and double data entry (DDE) for entry from paper originals; and Promasys, a clinical trial data management system for DDE and EDC, which is primarily used at research institutions for investigator-initiated trials. In addition, it offers consulting and professional services, such as project management, clinical services, training, custom configuration, system integration, standard operating procedures and implementation assistance, installation, and validation services, as well as application hosting and support services. The company sells its products through its direct sales force and relationships with CRO partners, as well as through co-marketing agreements with vendor and channel partners. OmniComm Systems, Inc. was founded in 1996 and is headquartered in Fort Lauderdale, Florida.

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