Simulations Plus (NASDAQ: SLP) and Omnicell (NASDAQ:OMCL) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitabiliy, institutional ownership, analyst recommendations, valuation and risk.

Risk & Volatility

Simulations Plus has a beta of -0.74, suggesting that its share price is 174% less volatile than the S&P 500. Comparatively, Omnicell has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Insider & Institutional Ownership

29.2% of Simulations Plus shares are owned by institutional investors. Comparatively, 96.4% of Omnicell shares are owned by institutional investors. 36.9% of Simulations Plus shares are owned by insiders. Comparatively, 3.8% of Omnicell 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.

Dividends

Simulations Plus pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Omnicell does not pay a dividend. Simulations Plus pays out 62.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Simulations Plus and Omnicell, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Simulations Plus 0 0 0 0 N/A
Omnicell 0 2 6 0 2.75

Omnicell has a consensus target price of $47.00, indicating a potential upside of 8.67%. Given Omnicell’s higher possible upside, analysts clearly believe Omnicell is more favorable than Simulations Plus.

Profitability

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

Net Margins Return on Equity Return on Assets
Simulations Plus 24.86% 23.21% 19.23%
Omnicell -1.45% 2.66% 1.24%

Valuation and Earnings

This table compares Simulations Plus and Omnicell’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Simulations Plus $21.83 million 12.40 $9.15 million $0.32 49.06
Omnicell $672.17 million 2.39 $43.90 million ($0.27) -160.19

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

Simulations Plus Company Profile

Simulations Plus, Inc. (Simulations Plus) develops and produces software for use in pharmaceutical research and for education, and provides consulting and contract research services to the pharmaceutical industry. The Company offers five software products for pharmaceutical research. ADMET (Absorption, Distribution, Metabolism, Excretion and Toxicity) Predictor is a computer program that takes molecular structures as inputs and predicts over 140 different properties for them at the rate of about 200,000 compounds per hour. MedChem Designer includes a small set of ADMET Predictor property predictions, allowing the chemist to modify molecular structures. MedChem Studio is a tool for medicinal and computational chemists for both data mining and for designing new drug-like molecules. DDDPlus simulates in-vitro laboratory experiments used to measure the rate of dissolution of the drug. GastroPlus simulates the absorption, pharmacokinetics, and pharmacodynamics of drugs.

Omnicell Company Profile

Omnicell, Inc. provides automation and business analytics software solutions for patient-centric medication and supply management across the entire healthcare continuum, from the acute care hospital setting to post-acute skilled nursing and long-term care facilities to the home. It operates through two segments: Automation and Analytics, and Medication Adherence. The Automation and Analytics segment is engaged in the design, manufacturing, selling and servicing of medication and supply dispensing systems, pharmacy inventory management systems and related software. The Medication Adherence segment includes the development, manufacturing and selling of consumable medication blister cards, packaging equipment, medication synchronization platform, and ancillary products and services. Its products are used to manage medication administration outside of the hospital setting and include medication adherence products sold under the brand name MTS, Surgichem, SureMed and the Omnicell brand.

Receive News & Ratings for Simulations Plus Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Simulations Plus Inc. and related companies with MarketBeat.com's FREE daily email newsletter.