Critical Review: Doximity (DOCS) & Its Rivals

Doximity (NYSE:DOCS) is one of 43 publicly-traded companies in the “Services – Computer Programming And Data Processing” industry, but how does it weigh in compared to its rivals? We will compare Doximity to similar companies based on the strength of its valuation, profitability, institutional ownership, risk, dividends, analyst recommendations and earnings.

Earnings and Valuation

This table compares Doximity and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Doximity	$621.33 million	$223.18 million	34.38
Doximity Competitors	$262.43 million	-$40.93 million	-8.14

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

Risk & Volatility

Doximity has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Doximity’s rivals have a beta of 0.77, indicating that their average share price is 23% less volatile than the S&P 500.

Insider and Institutional Ownership

87.2% of Doximity shares are held by institutional investors. Comparatively, 58.9% of shares of all “Services – Computer Programming And Data Processing” companies are held by institutional investors. 31.3% of Doximity shares are held by company insiders. Comparatively, 21.2% of shares of all “Services – Computer Programming And Data Processing” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Doximity and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Doximity	0	1	0	1	3.00
Doximity Competitors	84	183	204	9	2.29

As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 79.71%. Given Doximity’s rivals higher probable upside, analysts clearly believe Doximity has less favorable growth aspects than its rivals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Doximity	40.72%	24.63%	21.30%
Doximity Competitors	-53.73%	-1,002.64%	-68.20%

Summary

Doximity beats its rivals on 11 of the 13 factors compared.

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.