Analyzing Doximity (NYSE:DOCS) & Oblong (NASDAQ:OBLG)

Oblong (NASDAQ:OBLG) and Doximity (NYSE:DOCS) are both services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oblong	$2.38 million	2.60	-$4.04 million	($1.71)	-1.13
Doximity	$570.40 million	13.41	$223.18 million	$1.26	32.24

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Oblong and Doximity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oblong	1	0	0	0	1.00
Doximity	0	2	2	2	3.00

Doximity has a consensus price target of $55.00, indicating a potential upside of 35.40%. Given Doximity’s stronger consensus rating and higher possible upside, analysts clearly believe Doximity is more favorable than Oblong.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oblong	-187.17%	-62.63%	-52.38%
Doximity	40.72%	24.63%	21.30%

Volatility & Risk

Oblong has a beta of 3.12, meaning that its share price is 212% more volatile than the S&P 500. Comparatively, Doximity has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.

Insider and Institutional Ownership

2.0% of Oblong shares are held by institutional investors. Comparatively, 87.2% of Doximity shares are held by institutional investors. 2.7% of Oblong shares are held by company insiders. Comparatively, 31.3% of Doximity shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Doximity beats Oblong on 14 of the 15 factors compared between the two stocks.

About Oblong

Oblong Inc., together with its subsidiaries, provides multi-stream collaboration technologies and managed services for video collaboration and network applications in the United States and internationally. The company operates in two segments, Collaboration Products and Managed Services. Its flagship product is Mezzanine that enables visual collaboration across multi-users, multi-screens, multi-devices, and multi-locations for video telepresence, laptop and application sharing, and whiteboard sharing and slides applications. The company also provides managed videoconferencing services; and remote service management, which provides an overlay to enterprise information technology and channel partner support organizations, as well as support and management services for customer video environments. In addition, it offers network services comprising Cloud Connect: Video that allows its customers to outsource the management of their video traffic to them and provides the customer’s office locations with a secure, dedicated video network connection to the Oblong Cloud for video communications; Cloud Connect: Converge, which offers customized multiprotocol label switching solutions; and Cloud Connect: Cross Connect that allows the customer to leverage existing carrier for the extension of a Layer 2 private line to its data center. Further, it provides professional services, such as software development, visual and interaction design, engineering, and project support services; and resells video equipment to its customers. Oblong Inc. is based in Conifer, Colorado.

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.