Analyzing Doximity (DOCS) and The Competition

Doximity (NYSE:DOCS) is one of 44 public 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 earnings, risk, dividends, analyst recommendations, institutional ownership, profitability and valuation.

Insider & Institutional Ownership

87.2% of Doximity shares are held by institutional investors. Comparatively, 56.8% of shares of all “Services – Computer Programming And Data Processing” companies are held by institutional investors. 31.3% of Doximity shares are held by insiders. Comparatively, 22.3% of shares of all “Services – Computer Programming And Data Processing” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers 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	-51.08%	-912.69%	-63.05%

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Doximity	$570.40 million	$223.18 million	32.24
Doximity Competitors	$274.79 million	-$64.10 million	-9.13

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.

Risk and Volatility

Doximity has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, Doximity’s competitors have a beta of 0.80, suggesting that their average stock price is 20% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Doximity and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Doximity	0	2	2	2	3.00
Doximity Competitors	93	195	216	11	2.28

Doximity presently has a consensus price target of $55.00, suggesting a potential upside of 35.40%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 92.79%. Given Doximity’s competitors higher possible upside, analysts plainly believe Doximity has less favorable growth aspects than its competitors.

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.