Analyzing Certara (NASDAQ:CERT) and Doximity (NYSE:DOCS)

Doximity (NYSE:DOCS) and Certara (NASDAQ:CERT) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Earnings & Valuation

This table compares Doximity and Certara”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Doximity	$644.86 million	7.73	$196.05 million	$0.85	32.89
Certara	$418.84 million	3.41	-$1.60 million	($0.45)	-20.80

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

Analyst Recommendations

This is a breakdown of current ratings for Doximity and Certara, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Doximity	3	14	7	1	2.24
Certara	1	6	4	1	2.42

Doximity currently has a consensus target price of $31.95, suggesting a potential upside of 14.31%. Certara has a consensus target price of $8.45, suggesting a potential downside of 9.72%. Given Doximity’s higher possible upside, research analysts plainly believe Doximity is more favorable than Certara.

Insider and Institutional Ownership

87.2% of Doximity shares are owned by institutional investors. Comparatively, 74.0% of Certara shares are owned by institutional investors. 31.8% of Doximity shares are owned by company insiders. Comparatively, 1.1% of Certara shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Doximity	25.48%	18.06%	15.40%
Certara	-16.75%	3.86%	2.65%

Volatility and Risk

Doximity has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Certara has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Summary

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

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.

About Certara

Certara, Inc., together with its subsidiaries, provides software products and technology-enabled services to customers for biosimulation in drug discovery, preclinical and clinical research, regulatory submissions, and market access in the United States and internationally. It offers solutions for model-informed drug development, as well as biosimulation solution used to predict both pharmacokinetics and pharmacodynamics. The company provides Simcyp Simulator, a mechanistic biosimulation platform mechanistic biosimulation investigational new drug and translational stages; Simcyp Biopharmaceutics, used to identify and refine drug formulations; and Simcyp Secondary Intelligence which integrates toxicology with quantitative analysis of networks of molecular and functional biological changes to identify drug toxicity and adverse drug reactions. In addition, it offers Phoenix WinNonlin, a platform for non-compartmental analysis, pharmacokinetic/pharmacodynamic, and toxicokinetic; phoenix hosted, that provides a secured and validated certara amazon web services workspace; Phoenix NLME, a population modeling and simulation software for nonlinear mixed effects models; and pirana modeling workbench. Further, the company provides pinnacle 21, a cloud-based platform for clinical data automation, standardization, and validation; Pinnacle 21 Data Exchange, used to define data standards and specifications; and Metadata Repository, to enable study design using controlled and standardized data. It serves life sciences companies, biopharmaceutical companies, research organizations, academic institutions, and global regulators, as well as animal health, crop science, bio science, medical devices, and public sector industries. Certara Inc. was founded in 2008 and is headquartered in Princeton, New Jersey.