Head to Head Review: Doximity (DOCS) and Its Rivals

Doximity (NYSE:DOCS) is one of 93 public companies in the “Healthcare Technology” industry, but how does it contrast to its peers? We will compare Doximity to related businesses based on the strength of its earnings, profitability, institutional ownership, risk, analyst recommendations, valuation and dividends.

Volatility and Risk

Doximity has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Doximity’s peers have a beta of 1.11, indicating that their average share price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Doximity and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Doximity	3	14	8	0	2.20
Doximity Competitors	451	1532	2743	89	2.51

Doximity presently has a consensus target price of $30.45, suggesting a potential downside of 5.13%. As a group, “Healthcare Technology” companies have a potential upside of 46.19%. Given Doximity’s peers stronger consensus rating and higher probable upside, analysts clearly believe Doximity has less favorable growth aspects than its peers.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Doximity	$644.86 million	$196.05 million	44.58
Doximity Competitors	$352.08 million	-$24.15 million	12.62

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

Insider and Institutional Ownership

87.2% of Doximity shares are owned by institutional investors. Comparatively, 42.4% of shares of all “Healthcare Technology” companies are owned by institutional investors. 31.8% of Doximity shares are owned by insiders. Comparatively, 16.2% of shares of all “Healthcare Technology” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Doximity	21.12%	15.80%	13.38%
Doximity Competitors	-762.90%	-30.85%	-15.65%

Summary

Doximity beats its peers on 9 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.