Critical Analysis: Doximity (DOCS) & Its Rivals

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 related companies based on the strength of its risk, institutional ownership, dividends, valuation, profitability, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings for Doximity and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Doximity	0	1	0	1	3.00
Doximity Competitors	86	187	207	10	2.29

As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 73.38%. Given Doximity’s competitors higher probable upside, analysts plainly believe Doximity has less favorable growth aspects than its competitors.

Volatility & Risk

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

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Doximity	$570.40 million	$223.18 million	34.66
Doximity Competitors	$261.29 million	-$40.93 million	-8.91

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.

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%

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, endowments and hedge funds believe a company will outperform the market over the long term.

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.