Outset Medical (NASDAQ:OM – Get Free Report) and Omnicell (NASDAQ:OMCL – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.
Volatility and Risk
Outset Medical has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500. Comparatively, Omnicell has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.
Earnings & Valuation
This table compares Outset Medical and Omnicell”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Outset Medical | $119.48 million | 0.71 | -$81.65 million | ($4.16) | -1.10 |
| Omnicell | $1.18 billion | 1.65 | $2.05 million | $0.44 | 97.73 |
Omnicell has higher revenue and earnings than Outset Medical. Outset Medical is trading at a lower price-to-earnings ratio than Omnicell, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Outset Medical and Omnicell’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Outset Medical | -63.65% | -56.13% | -27.45% |
| Omnicell | 1.67% | 4.00% | 2.46% |
Institutional & Insider Ownership
97.7% of Omnicell shares are owned by institutional investors. 2.5% of Outset Medical shares are owned by company insiders. Comparatively, 2.9% of Omnicell shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings for Outset Medical and Omnicell, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Outset Medical | 1 | 1 | 3 | 0 | 2.40 |
| Omnicell | 0 | 1 | 7 | 1 | 3.00 |
Outset Medical presently has a consensus target price of $10.00, indicating a potential upside of 118.34%. Omnicell has a consensus target price of $59.86, indicating a potential upside of 39.20%. Given Outset Medical’s higher probable upside, equities research analysts plainly believe Outset Medical is more favorable than Omnicell.
Summary
Omnicell beats Outset Medical on 13 of the 15 factors compared between the two stocks.
About Outset Medical
Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.
About Omnicell
Omnicell, Inc., together with its subsidiaries, provides medication management solutions and adherence tools for healthcare systems and pharmacies the United States and internationally. The company offers point of care automation solutions to improve clinician workflows in patient care areas of the healthcare system; XT Series automated dispensing systems for medications and supplies used in nursing units and other clinical areas of the hospital, as well as specialized automated dispensing systems for operating room; and robotic dispensing systems for handling the stocking and retrieval of boxed medications. It also provides central pharmacy automation solutions; IV compounding robots; and inventory management software. In addition, the company provides single-dose automation solutions that fill and label a variety of patient-specific, single-dose medication blister packaging based on incoming prescriptions; fully automated and semi-automated filling equipment for institutional pharmacies to warrant automated packaging of medications; and medication blister card packaging and packaging supplies to enhance medication adherence in non-acute care settings. Further, it offers EnlivenHealth Patient Engagement, a web-based solutions. The company was formerly known as Omnicell Technologies, Inc. and changed its name to Omnicell, Inc. in 2001. Omnicell, Inc. was incorporated in 1992 and is headquartered in Fort Worth, Texas.
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