Head to Head Review: Cotiviti (COTV) vs. Reis (REIS)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Cotiviti 21.49% 12.44% 6.65%
Reis -10.19% 1.03% 0.76%

Volatility & Risk

Cotiviti has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Reis has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Dividends

Reis pays an annual dividend of $0.76 per share and has a dividend yield of 3.3%. Cotiviti does not pay a dividend. Reis pays out 475.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Cotiviti and Reis’ revenue, earnings per share (EPS) 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
Reis $48.19 million 5.52 -$3.15 million $0.16 143.63

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

Institutional & Insider Ownership

90.4% of Cotiviti shares are held by institutional investors. Comparatively, 58.6% of Reis shares are held by institutional investors. 7.5% of Cotiviti shares are held by company insiders. Comparatively, 21.6% of Reis shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Cotiviti and Reis, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cotiviti 0 11 0 0 2.00
Reis 0 2 0 0 2.00

Cotiviti presently has a consensus price target of $35.08, suggesting a potential downside of 21.58%. Reis has a consensus price target of $23.00, suggesting a potential upside of 0.09%. Given Reis’ higher probable upside, analysts plainly believe Reis is more favorable than Cotiviti.

Summary

Cotiviti beats Reis on 9 of the 14 factors compared between the two stocks.

Cotiviti Company Profile

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.

Reis Company Profile

Reis, Inc., through its subsidiary, Reis Services, provides commercial real estate market information and analytical tools to real estate professionals in the United States. The company maintains a proprietary database containing information on commercial properties, including apartment, office, retail, warehouse/distribution, flex/research and development, self-storage, and seniors and student housing properties in the metropolitan markets and neighborhoods. Its data is used by real estate investors, lenders, and other professionals to make informed buying, selling, and financing decisions; and debt and equity investors to assess, quantify, and manage the risks of default and loss associated with individual mortgages, properties, portfolios, and real estate backed securities. The company's product portfolio features Reis SE, a flagship delivery platform aimed at larger and mid-sized enterprises; Reis Portfolio CRE and other portfolio support products and services aimed at risk managers and credit administrators at banks and non-bank lending institutions; and ReisReports aimed at prosumers and smaller enterprises. Its products offer online access to a proprietary database of commercial real estate information and analytical tools designed to facilitate debt and equity transactions, and ongoing asset and portfolio evaluations; and access to market trends and forecasts at metropolitan and neighborhood levels, as well as building-specific information, such as rents, vacancy rates, lease terms, property sales, new construction listings, property valuation estimates, and property level tax information. The company serves various lending institutions, equity investors, brokers, and appraisers. The company was formerly known as Wellsford Real Properties, Inc. and changed its name to Reis, Inc. in May 2007. Reis, Inc. was founded in 1980 and is based in New York, New York.

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