AmerisourceBergen (NYSE:ABC) and Omnicell (NASDAQ:OMCL) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.
Profitability
This table compares AmerisourceBergen and Omnicell's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
AmerisourceBergen | -1.80% | 65.93% | 3.91% |
Omnicell | 4.25% | 7.96% | 5.19% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for AmerisourceBergen and Omnicell, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
AmerisourceBergen | 0 | 3 | 7 | 0 | 2.70 |
Omnicell | 0 | 2 | 5 | 0 | 2.71 |
AmerisourceBergen currently has a consensus price target of $121.1111, indicating a potential upside of 17.39%. Omnicell has a consensus price target of $116.3333, indicating a potential downside of 10.10%. Given AmerisourceBergen's higher possible upside, equities research analysts plainly believe AmerisourceBergen is more favorable than Omnicell.
Valuation & Earnings
This table compares AmerisourceBergen and Omnicell's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
AmerisourceBergen | $189.89 billion | 0.11 | $-3,408,720,000.00 | $7.90 | 13.06 |
Omnicell | $897.03 million | 6.21 | $61.34 million | $2.19 | 59.09 |
Omnicell has lower revenue, but higher earnings than AmerisourceBergen. AmerisourceBergen is trading at a lower price-to-earnings ratio than Omnicell, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
63.4% of AmerisourceBergen shares are held by institutional investors. Comparatively, 99.2% of Omnicell shares are held by institutional investors. 28.3% of AmerisourceBergen shares are held by insiders. Comparatively, 2.6% of Omnicell shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
AmerisourceBergen has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Omnicell has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.
Summary
Omnicell beats AmerisourceBergen on 8 of the 14 factors compared between the two stocks.