Head to Head Analysis: Omnicell (OMCL) & HealthEquity (HQY)
Omnicell (NASDAQ: OMCL) and HealthEquity (NASDAQ:HQY) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares Omnicell and HealthEquity’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Omnicell||$680.15 million||2.70||$42.68 million||($0.22)||-223.18|
|HealthEquity||$189.78 million||14.26||$57.61 million||$0.67||67.34|
HealthEquity has higher revenue, but lower earnings than Omnicell. Omnicell is trading at a lower price-to-earnings ratio than HealthEquity, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Omnicell and HealthEquity, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Omnicell presently has a consensus target price of $51.57, indicating a potential upside of 5.03%. HealthEquity has a consensus target price of $57.00, indicating a potential upside of 26.33%. Given HealthEquity’s stronger consensus rating and higher probable upside, analysts clearly believe HealthEquity is more favorable than Omnicell.
Insider and Institutional Ownership
96.4% of Omnicell shares are held by institutional investors. Comparatively, 91.9% of HealthEquity shares are held by institutional investors. 3.8% of Omnicell shares are held by company insiders. Comparatively, 29.0% of HealthEquity shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Omnicell has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, HealthEquity has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500.
This table compares Omnicell and HealthEquity’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
HealthEquity beats Omnicell on 11 of the 14 factors compared between the two stocks.
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.
HealthEquity, Inc. provides a range of solutions for managing healthcare accounts (Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs)) for health plans, insurance companies and third-party administrators. The Company is engaged in technology-enabled services platforms that allow consumers to make healthcare saving and spending decisions. Its platform provides an ecosystem where consumers can access their tax-advantaged healthcare savings, compare treatment options and pricing, evaluate and pay healthcare bills, receive personalized benefit and clinical information, earn wellness incentives and make educated investment choices to help in their tax-advantaged healthcare savings. Its products and services include healthcare saving and spending platform, health savings accounts, investment advisory services, reimbursement arrangements and healthcare incentives. Its ecosystem primarily consists of HSA.
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