Analyzing Certara (CERT) and Its Competitors

Certara (NASDAQ:CERT) is one of 93 public companies in the “Healthcare Technology” industry, but how does it weigh in compared to its peers? We will compare Certara to related businesses based on the strength of its valuation, risk, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Insider & Institutional Ownership

74.0% of Certara shares are held by institutional investors. Comparatively, 42.4% of shares of all “Healthcare Technology” companies are held by institutional investors. 1.1% of Certara shares are held by company insiders. Comparatively, 16.2% of shares of all “Healthcare Technology” companies 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.

Earnings & Valuation

This table compares Certara and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Certara	$418.84 million	-$1.60 million	-28.88
Certara Competitors	$341.86 million	-$24.15 million	12.78

Certara has higher revenue and earnings than its peers. Certara is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Certara and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Certara	-16.14%	3.36%	2.31%
Certara Competitors	-754.24%	-30.01%	-15.66%

Analyst Ratings

This is a summary of current ratings and recommmendations for Certara and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Certara	1	7	4	1	2.38
Certara Competitors	453	1534	2743	89	2.51

Certara currently has a consensus price target of $9.92, indicating a potential downside of 18.25%. As a group, “Healthcare Technology” companies have a potential upside of 43.58%. Given Certara’s peers stronger consensus rating and higher probable upside, analysts clearly believe Certara has less favorable growth aspects than its peers.

Volatility and Risk

Certara has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, Certara’s peers have a beta of 1.11, indicating that their average stock price is 11% more volatile than the S&P 500.

Summary

Certara beats its peers on 8 of the 13 factors compared.

About Certara

Certara provides software and consulting services that support the development and use of medicines. Its biosimulation tools help pharmaceutical and biotechnology companies model how drugs behave in the body, assess potential treatment outcomes, and inform decisions during drug research and development. The company’s offerings include software for pharmacokinetic and pharmacodynamic modeling, clinical trial simulation, and drug development analysis. Certara also provides scientific and regulatory consulting, including support for regulatory submissions and strategies that use modeling and simulation to guide development programs.