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

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Certara	-16.14%	3.36%	2.31%
Doximity	21.12%	15.80%	13.38%

Volatility & Risk

Certara has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Doximity has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Insider & Institutional Ownership

74.0% of Certara shares are owned by institutional investors. Comparatively, 87.2% of Doximity shares are owned by institutional investors. 1.1% of Certara shares are owned by insiders. Comparatively, 31.8% of Doximity shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Certara	$418.84 million	4.35	-$1.60 million	($0.42)	-28.45
Doximity	$644.86 million	9.05	$196.05 million	$0.72	45.47

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 recent recommendations and price targets for Certara and Doximity, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Certara	1	7	4	1	2.38
Doximity	3	14	8	0	2.20

Certara currently has a consensus price target of $9.92, indicating a potential downside of 17.01%. Doximity has a consensus price target of $30.59, indicating a potential downside of 6.56%. Given Doximity’s higher probable upside, analysts clearly believe Doximity is more favorable than Certara.

Summary

Doximity beats Certara on 12 of the 15 factors compared between the two stocks.

About Certara

Certara provides software and consulting services that support the development and use of medicines. Its biosimulation tools help pharmaceutical and biotechnology companies model how drugs behave in the body, assess potential treatment outcomes, and inform decisions during drug research and development. The company’s offerings include software for pharmacokinetic and pharmacodynamic modeling, clinical trial simulation, and drug development analysis. Certara also provides scientific and regulatory consulting, including support for regulatory submissions and strategies that use modeling and simulation to guide development programs.

About Doximity

Doximity, Inc. operates a digital platform designed for medical professionals, including physicians and other clinicians. Its services support professional networking, medical news and research discovery, career development, and communication among healthcare professionals. The company also offers clinical workflow tools, including Doximity Dialer, which enables clinicians to make calls and conduct video visits using a work number, as well as digital fax and document services. Doximity provides marketing and recruitment solutions to healthcare organizations and life sciences companies.