Omnicell (OMCL) versus Cotiviti Holdings (COTV) Critical Analysis

Cotiviti Holdings (NASDAQ: COTV) and Omnicell (NASDAQ:OMCL) are both medical software & technology services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.


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 11.18% 7.68% 3.80%
Omnicell -0.51% -0.79% -0.38%

Institutional and Insider Ownership

98.6% of Omnicell shares are owned by institutional investors. 3.8% of Omnicell shares are owned by 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.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Cotiviti Holdings N/A N/A N/A $0.98 32.69
Omnicell $692.62 million 2.53 $600,000.00 ($0.11) -419.55

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

Analyst Ratings

This is a breakdown of recent recommendations for Cotiviti Holdings and Omnicell, as provided by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cotiviti Holdings 0 3 6 0 2.67
Omnicell 0 1 6 0 2.86

Cotiviti Holdings presently has a consensus target price of $41.29, suggesting a potential upside of 28.86%. Omnicell has a consensus target price of $54.86, suggesting a potential upside of 18.87%. Given Cotiviti Holdings’ higher probable upside, equities research analysts plainly believe Cotiviti Holdings is more favorable than Omnicell.


Cotiviti Holdings beats Omnicell on 5 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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