Xperi (NYSE:XPER) versus Doximity (NYSE:DOCS) Financial Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Doximity	37.54%	23.84%	20.42%
Xperi	1.53%	-0.22%	-0.14%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Doximity	0	3	4	2	2.89
Xperi	1	1	0	0	1.50

Doximity presently has a consensus target price of $44.50, suggesting a potential upside of 76.38%. Given Doximity’s stronger consensus rating and higher probable upside, analysts plainly believe Doximity is more favorable than Xperi.

Institutional and Insider Ownership

87.2% of Doximity shares are owned by institutional investors. Comparatively, 94.3% of Xperi shares are owned by institutional investors. 31.3% of Doximity shares are owned by company insiders. Comparatively, 2.1% of Xperi shares are owned 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.

Volatility and Risk

Doximity has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Xperi has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Doximity	$570.40 million	8.17	$223.18 million	$1.20	21.03
Xperi	$493.69 million	0.51	-$14.01 million	$0.16	34.13

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

Summary

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

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.

About Xperi

Xperi Holding Corporation, together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It operates through two segments, Product, and Intellectual Property Licensing. The company invents, develops, and delivers various technologies. It licenses audio, digital radio, imaging, edge-based machine learning, and multi-channel video user experience solutions to consumer electronics customers, automotive manufacturers, or supply chain partners. The company also provides licensing to multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies in media industry; and memory, sensors, RF component, and foundry companies in semiconductor industry. It provides its technologies under the DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive brands. The company is headquartered in San Jose, California.