Critical Review: OptimizeRx (NASDAQ:OPRX) & Doximity (NYSE:DOCS)

OptimizeRx (NASDAQ:OPRX) and Doximity (NYSE:DOCS) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Institutional and Insider Ownership

76.5% of OptimizeRx shares are owned by institutional investors. Comparatively, 87.2% of Doximity shares are owned by institutional investors. 7.5% of OptimizeRx shares are owned by insiders. Comparatively, 31.8% of Doximity shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares OptimizeRx and Doximity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OptimizeRx	6.37%	10.86%	7.93%
Doximity	30.40%	20.40%	17.43%

Volatility and Risk

OptimizeRx has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Doximity has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.

Earnings & Valuation

This table compares OptimizeRx and Doximity”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptimizeRx	$109.43 million	1.04	$5.13 million	$0.35	17.29
Doximity	$644.86 million	5.94	$196.05 million	$0.99	21.16

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for OptimizeRx and Doximity, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OptimizeRx	1	2	6	0	2.56
Doximity	3	13	6	2	2.29

OptimizeRx currently has a consensus price target of $13.43, suggesting a potential upside of 121.96%. Doximity has a consensus price target of $29.33, suggesting a potential upside of 40.03%. Given OptimizeRx’s stronger consensus rating and higher probable upside, research analysts clearly believe OptimizeRx is more favorable than Doximity.

Summary

Doximity beats OptimizeRx on 12 of the 14 factors compared between the two stocks.

About OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.

About Doximity

Doximity, Inc. operates a cloud-based digital platform for medical professionals in the United States. The company’s cloud-based platform provides its members with tools built for medical professionals, enabling them to collaborate with their colleagues, coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, and manage their careers. It primarily serves pharmaceutical companies and health systems. The company was formerly known as 3MD Communications, Inc. and changed its name to Doximity, Inc. in June 2010. Doximity, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.