Contrasting Omnicell (NASDAQ:OMCL) and RenovoRx (NASDAQ:RNXT)

Omnicell (NASDAQ:OMCL) and RenovoRx (NASDAQ:RNXT) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

Omnicell has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, RenovoRx has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Insider and Institutional Ownership

97.7% of Omnicell shares are held by institutional investors. Comparatively, 3.1% of RenovoRx shares are held by institutional investors. 2.9% of Omnicell shares are held by company insiders. Comparatively, 9.4% of RenovoRx shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Omnicell and RenovoRx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnicell	0	2	7	0	2.78
RenovoRx	1	0	2	1	2.75

Omnicell currently has a consensus target price of $57.86, suggesting a potential upside of 72.19%. RenovoRx has a consensus target price of $8.50, suggesting a potential upside of 437.97%. Given RenovoRx’s higher possible upside, analysts plainly believe RenovoRx is more favorable than Omnicell.

Profitability

This table compares Omnicell and RenovoRx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omnicell	3.13%	5.66%	3.57%
RenovoRx	-621.71%	-135.11%	-101.91%

Earnings and Valuation

This table compares Omnicell and RenovoRx”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnicell	$1.18 billion	1.29	$2.05 million	$0.84	40.00
RenovoRx	$1.12 million	63.67	-$11.17 million	($0.31)	-5.10

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

Summary

Omnicell beats RenovoRx on 10 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 RenovoRx

RenovoRx, Inc., a clinical-stage biopharmaceutical company, focuses on developing proprietary targeted combination therapies to improve therapeutic outcomes for cancer patients undergoing treatment. Its lead product candidate is RenovoGem, an oncology drug-device combination product, consisting of intra-arterial gemcitabine and RenovoCath that is in Phase III clinical trials for the locally advanced pancreatic cancer. The company has a research collaboration with Imugene Limited to deliver oncolytic virus therapy for the treatment of difficult-to-access tumors. RenovoRx, Inc. was founded in 2009 and is headquartered in Los Altos, California.