Comparing Xperi (NYSE:XPER) & Doximity (NYSE:DOCS)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xperi	1.53%	-0.22%	-0.14%
Doximity	37.54%	23.84%	20.42%

Earnings & Valuation

This table compares Xperi and Doximity”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xperi	$493.69 million	0.52	-$14.01 million	$0.16	34.38
Doximity	$570.40 million	8.28	$223.18 million	$1.20	21.31

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

Institutional & Insider Ownership

94.3% of Xperi shares are owned by institutional investors. Comparatively, 87.2% of Doximity shares are owned by institutional investors. 2.1% of Xperi shares are owned by company insiders. Comparatively, 31.3% of Doximity shares are owned by company 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.

Analyst Ratings

This is a summary of recent recommendations for Xperi and Doximity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xperi	1	1	0	0	1.50
Doximity	0	3	4	2	2.89

Doximity has a consensus price target of $44.50, indicating a potential upside of 74.03%. Given Doximity’s stronger consensus rating and higher possible upside, analysts plainly believe Doximity is more favorable than Xperi.

Volatility and Risk

Xperi has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, Doximity has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.

Summary

Doximity beats Xperi on 13 of the 15 factors compared between the two stocks.

About Xperi

Xperi Holding Corporation, together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It operates through two segments, Product, and Intellectual Property Licensing. The company invents, develops, and delivers various technologies. It licenses audio, digital radio, imaging, edge-based machine learning, and multi-channel video user experience solutions to consumer electronics customers, automotive manufacturers, or supply chain partners. The company also provides licensing to multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies in media industry; and memory, sensors, RF component, and foundry companies in semiconductor industry. It provides its technologies under the DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive brands. The company is headquartered in San Jose, California.

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.