Financial Analysis: Doximity (DOCS) versus Its Competitors

Doximity (NYSE:DOCS) is one of 48 public companies in the “Services – Computer Programming And Data Processing” industry, but how does it compare to its rivals? We will compare Doximity to similar companies based on the strength of its risk, valuation, earnings, profitability, dividends, institutional ownership and analyst recommendations.

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	-51.08%	-912.69%	-63.05%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Doximity	0	2	2	3	3.14
Doximity Competitors	96	197	217	12	2.28

Doximity currently has a consensus price target of $55.00, indicating a potential upside of 41.97%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 93.45%. Given Doximity’s rivals higher probable upside, analysts clearly believe Doximity has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Doximity and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Doximity	$570.40 million	$223.18 million	30.75
Doximity Competitors	$222.38 million	-$52.83 million	-6.40

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.

Insider & Institutional Ownership

87.2% of Doximity shares are held by institutional investors. Comparatively, 56.0% 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, 16.3% 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 stock will outperform the market over the long term.

Volatility & Risk

Doximity has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Doximity’s rivals have a beta of 0.61, suggesting that their average share price is 39% less volatile than the S&P 500.

Summary

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

Doximity Company Profile

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.