Contrasting Doximity (NYSE:DOCS) & Claritev (NYSE:CTEV)

Claritev (NYSE:CTEV) and Doximity (NYSE:DOCS) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Profitability

This table compares Claritev and Doximity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Claritev	-28.46%	N/A	-5.76%
Doximity	25.48%	18.06%	15.40%

Volatility and Risk

Claritev has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Doximity has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Insider and Institutional Ownership

87.2% of Claritev shares are owned by institutional investors. Comparatively, 87.2% of Doximity shares are owned by institutional investors. 7.4% of Claritev shares are owned by insiders. Comparatively, 31.8% of Doximity 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 recent ratings and recommmendations for Claritev and Doximity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Claritev	1	2	6	0	2.56
Doximity	4	12	7	2	2.28

Claritev currently has a consensus target price of $44.83, suggesting a potential upside of 21.07%. Doximity has a consensus target price of $32.43, suggesting a potential upside of 28.53%. Given Doximity’s higher probable upside, analysts plainly believe Doximity is more favorable than Claritev.

Earnings & Valuation

This table compares Claritev and Doximity”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Claritev	$965.41 million	0.65	-$284.28 million	($17.01)	-2.18
Doximity	$655.57 million	6.86	$196.05 million	$0.85	29.68

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

Summary

Doximity beats Claritev on 13 of the 15 factors compared between the two stocks.

About Claritev

MultiPlan Corporation, together with its subsidiaries, provides data analytics and technology-enabled cost management, payment, and revenue integrity solutions to the healthcare industry in the United States. The company offers analytics-based services that reduce medical costs, through data-driven algorithms and insights that detect claims over-charges and negotiate or recommend reimbursement; and network-based services that provide contracted discounts with healthcare providers, as well as outsourced network development and management services. It provides payment and revenue integrity services, such as identifying and removing improper and unnecessary charges paid during the claim, as well as services to identify and help restore and preserve underpaid premium dollars. In addition, the company offers data and decision science services including a suite of solutions that apply modern methods of data science to produce descriptive, predictive, and prescriptive analytics that drive optimized benefit plan design, support decision-making, improve clinical outcomes, and reduce the total cost of care; and business-to-business healthcare payments and other services. It serves national and regional insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, TPAs, self-insured health plans, property and casualty insurers, bill review companies, and other companies involved in the claim adjudication process. MultiPlan Corporation was founded in 1980 and is headquartered in New York, New York.

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.