Head-To-Head Analysis: Doximity (DOCS) vs. Its Peers

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 competitors? We will compare Doximity to similar businesses based on the strength of its profitability, dividends, institutional ownership, analyst recommendations, earnings, risk and valuation.

Institutional & Insider Ownership

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

Profitability

This table compares Doximity and its competitors’ 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%

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Doximity	$570.40 million	$223.18 million	32.04
Doximity Competitors	$279.76 million	-$61.83 million	-9.62

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Doximity and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Doximity	0	2	1	2	3.00
Doximity Competitors	87	192	212	11	2.29

As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 90.00%. Given Doximity’s competitors higher possible upside, analysts clearly believe Doximity has less favorable growth aspects than its competitors.

Volatility and Risk

Doximity has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Doximity’s competitors have a beta of 0.77, indicating that their average stock price is 23% less volatile than the S&P 500.

Summary

Doximity beats its competitors 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.