Analyzing Doximity (DOCS) and The Competition

Doximity (NYSE:DOCS) is one of 44 publicly-traded companies in the “Services – Computer Programming And Data Processing” industry, but how does it compare to its competitors? We will compare Doximity to similar companies based on the strength of its profitability, dividends, earnings, valuation, analyst recommendations, risk and institutional ownership.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Doximity	0	2	2	2	3.00
Doximity Competitors	93	194	216	11	2.28

Doximity currently has a consensus target price of $55.00, indicating a potential upside of 35.40%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 92.58%. Given Doximity’s competitors higher probable upside, analysts plainly believe Doximity has less favorable growth aspects than its competitors.

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	-51.08%	-912.69%	-63.05%

Volatility and Risk

Doximity has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Doximity’s competitors have a beta of 0.80, meaning that their average share price is 20% less volatile than the S&P 500.

Institutional & Insider Ownership

87.2% of Doximity shares are owned by institutional investors. Comparatively, 56.7% 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, 22.3% of shares of all “Services – Computer Programming And Data Processing” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & 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	32.24
Doximity Competitors	$272.69 million	-$64.10 million	-9.16

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.

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.