Doximity (NASDAQ:DOCS – Get Rating) and Computer Programs and Systems (NASDAQ:CPSI – Get Rating) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.
Institutional & Insider Ownership
52.5% of Doximity shares are owned by institutional investors. Comparatively, 89.9% of Computer Programs and Systems shares are owned by institutional investors. 45.2% of Doximity shares are owned by insiders. Comparatively, 4.2% of Computer Programs and Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for Doximity and Computer Programs and Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Doximity | 3 | 3 | 7 | 0 | 2.31 |
| Computer Programs and Systems | 0 | 1 | 1 | 0 | 2.50 |
Doximity presently has a consensus target price of $40.50, suggesting a potential upside of 20.43%. Computer Programs and Systems has a consensus target price of $40.50, suggesting a potential upside of 34.96%. Given Computer Programs and Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Computer Programs and Systems is more favorable than Doximity.
Risk & Volatility
Doximity has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Computer Programs and Systems has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.
Earnings & Valuation
This table compares Doximity and Computer Programs and Systems’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Doximity | $343.55 million | 18.95 | $154.78 million | $0.55 | 61.15 |
| Computer Programs and Systems | $326.65 million | 1.33 | $15.87 million | $1.08 | 27.79 |
Doximity has higher revenue and earnings than Computer Programs and Systems. Computer Programs and Systems is trading at a lower price-to-earnings ratio than Doximity, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Doximity and Computer Programs and Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Doximity | 29.59% | 13.64% | 11.83% |
| Computer Programs and Systems | 4.86% | 14.20% | 7.52% |
Summary
Doximity beats Computer Programs and Systems on 9 of the 14 factors compared between the two stocks.
About Doximity
Doximity, Inc. operates a cloud-based digital platform for medical professionals in the United States. The company’s 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 manufacturers and healthcare 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.
About Computer Programs and Systems
Computer Programs & Systems, Inc. provides healthcare information technology solutions and services. It operates through the following segments: Acute Care EHR, Post-acute Care EHR, and TruBridge. The Acute EHR segment provides acute care electronic health record (EHR) solutions, Thrive and Centriq, and related services for community hospitals and their physician clinics. The Post-acute Care EHR segment provides post-acute care EHR solution and related services for skilled nursing and assisted living facilities. The TruBridge segment focuses on providing business management, consulting, and managed IT services along with its complete revenue cycle management solution for all care settings, regardless of their primary healthcare information solutions provider. The company was founded by Michael Kenny Muscat Sr. in 1979 and is headquartered in Mobile, AL.
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