Critical Analysis: Fortrea (FTRE) & The Competition

Fortrea (NASDAQ:FTREGet Free Report) is one of 46 publicly-traded companies in the “Medical laboratories” industry, but how does it contrast to its rivals? We will compare Fortrea to similar companies based on the strength of its dividends, valuation, earnings, profitability, institutional ownership, analyst recommendations and risk.

Insider and Institutional Ownership

47.5% of shares of all “Medical laboratories” companies are held by institutional investors. 0.1% of Fortrea shares are held by company insiders. Comparatively, 18.9% of shares of all “Medical laboratories” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Fortrea and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Fortrea $3.08 billion -$3.40 million -19.07
Fortrea Competitors $997.16 million -$125.17 million 4.58

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

Profitability

This table compares Fortrea and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fortrea -4.11% 4.76% 1.87%
Fortrea Competitors -3,334.93% -1,311.64% -38.79%

Analyst Recommendations

This is a summary of recent recommendations for Fortrea and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortrea 1 5 5 1 2.50
Fortrea Competitors 308 1203 2089 33 2.51

Fortrea currently has a consensus price target of $32.30, indicating a potential upside of 21.84%. As a group, “Medical laboratories” companies have a potential upside of 23.96%. Given Fortrea’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Fortrea has less favorable growth aspects than its rivals.

About Fortrea

(Get Free Report)

Fortrea Holdings Inc., a contract research organization, primarily engages in the provision of biopharmaceutical product and medical device development services worldwide. The company operates through two segments: Clinical Services and Enabling Services. The Clinical Services segment provides across the clinical pharmacology and clinical development spectrum. The Enabling Services segment provides patient access and clinical trial technology solutions to customers that streamline complex randomization and optimize the trial drug supply process. The company offers delivery models that include full service, functional service provider, and hybrid service structures. It also offers phase I-IV clinical trial management, differentiated technology enabled trial solutions, and post approval services, as well as consulting services. The company serves pharmaceutical, biotechnology, and medical device organizations. Fortrea Holdings Inc. was incorporated in 2023 and is headquartered in Durham, North Carolina.

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