Omnicell (NASDAQ:OMCL – Get Free Report) and American Well (NYSE:AMWL – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.
Profitability
This table compares Omnicell and American Well’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Omnicell | 0.17% | 3.00% | 1.81% |
| American Well | -38.38% | -35.33% | -26.43% |
Valuation & Earnings
This table compares Omnicell and American Well”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Omnicell | $1.18 billion | 1.32 | $2.05 million | $0.04 | 860.00 |
| American Well | $249.32 million | 0.35 | -$95.70 million | ($5.95) | -0.88 |
Omnicell has higher revenue and earnings than American Well. American Well is trading at a lower price-to-earnings ratio than Omnicell, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and price targets for Omnicell and American Well, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Omnicell | 1 | 1 | 6 | 0 | 2.63 |
| American Well | 1 | 5 | 1 | 0 | 2.00 |
Omnicell presently has a consensus price target of $58.50, suggesting a potential upside of 70.06%. American Well has a consensus price target of $7.40, suggesting a potential upside of 41.87%. Given Omnicell’s stronger consensus rating and higher possible upside, analysts clearly believe Omnicell is more favorable than American Well.
Institutional and Insider Ownership
97.7% of Omnicell shares are owned by institutional investors. Comparatively, 56.1% of American Well shares are owned by institutional investors. 2.5% of Omnicell shares are owned by company insiders. Comparatively, 11.8% of American Well shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Omnicell has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, American Well has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.
Summary
Omnicell beats American Well on 12 of the 14 factors compared between the two stocks.
About Omnicell
Omnicell, Inc., together with its subsidiaries, provides medication management solutions and adherence tools for healthcare systems and pharmacies the United States and internationally. The company offers point of care automation solutions to improve clinician workflows in patient care areas of the healthcare system; XT Series automated dispensing systems for medications and supplies used in nursing units and other clinical areas of the hospital, as well as specialized automated dispensing systems for operating room; and robotic dispensing systems for handling the stocking and retrieval of boxed medications. It also provides central pharmacy automation solutions; IV compounding robots; and inventory management software. In addition, the company provides single-dose automation solutions that fill and label a variety of patient-specific, single-dose medication blister packaging based on incoming prescriptions; fully automated and semi-automated filling equipment for institutional pharmacies to warrant automated packaging of medications; and medication blister card packaging and packaging supplies to enhance medication adherence in non-acute care settings. Further, it offers EnlivenHealth Patient Engagement, a web-based solutions. The company was formerly known as Omnicell Technologies, Inc. and changed its name to Omnicell, Inc. in 2001. Omnicell, Inc. was incorporated in 1992 and is headquartered in Fort Worth, Texas.
About American Well
American Well Corporation, an enterprise platform and software company, delivers digitally enabling hybrid care in the United States and internationally. The company offers Converge, a cloud-based platform that enables health providers, payers, and innovators to provide in-person, virtual and automated care; and delivers virtual primary care, post-discharge follow-up, chronic condition management, virtual nursing, e-sitting, on-demand and scheduled virtual visits, specialty consults, automated care, and behavioral health, as well as specialty care programs, including dermatology, musculoskeletal care, second opinion, and cardiometabolic care to patients and members. It provides Carepoint devices comprising carts, peripherals, tablets, and TVs, which serve as digital access points in clinical settings. In addition, the company offers Amwell Medical Group network services consisting of primary and urgent care, behavioral health therapy, acute psychiatry, lactation counseling, and nutrition services. Further, it provides professional services to facilitate implementation, workflow design, systems integration, and service expansion for its products, as well as patient and provider engagement services. The company sells its products through field sales professionals, channel partners, and value-added resellers. American Well Corporation was incorporated in 2006 and is headquartered in Boston, Massachusetts.
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