Reviewing Fortrea (FTRE) & The Competition

Fortrea (NASDAQ:FTRE) is one of 47 publicly-traded companies in the “Medical laboratories” industry, but how does it contrast to its competitors? We will compare Fortrea to similar companies based on the strength of its institutional ownership, risk, valuation, profitability, analyst recommendations, dividends and earnings.

Profitability

This table compares Fortrea and its competitors’ 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	-3,337.10%	-1,358.45%	-41.71%

Earnings & Valuation

This table compares Fortrea and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fortrea	$3.11 billion	-$3.40 million	-17.31
Fortrea Competitors	$985.83 million	-$121.96 million	4.45

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

Insider and Institutional Ownership

47.5% of shares of all “Medical laboratories” companies are owned by institutional investors. 0.1% of Fortrea shares are owned by insiders. Comparatively, 18.8% of shares of all “Medical laboratories” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Fortrea and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortrea	1	5	5	1	2.50
Fortrea Competitors	308	1208	2107	33	2.51

Fortrea presently has a consensus price target of $32.30, indicating a potential upside of 34.25%. As a group, “Medical laboratories” companies have a potential upside of 25.40%. Given Fortrea’s higher possible upside, equities analysts clearly believe Fortrea is more favorable than its competitors.

Summary

Fortrea beats its competitors on 7 of the 12 factors compared.

About Fortrea

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.