Head to Head Contrast: Omnicell (OMCL) & Medical Transcription Billing (NASDAQ:MTBC)

Medical Transcription Billing (NASDAQ: MTBC) and Omnicell (NASDAQ:OMCL) are both small-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Earnings and Valuation

This table compares Medical Transcription Billing and Omnicell’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Medical Transcription Billing $24.49 million 1.37 -$8.79 million ($1.04) -2.79
Omnicell $692.62 million 2.86 $600,000.00 ($0.11) -475.45

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

Profitability

This table compares Medical Transcription Billing and Omnicell’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Medical Transcription Billing -29.08% -40.41% -15.27%
Omnicell -0.51% -0.79% -0.38%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Medical Transcription Billing and Omnicell, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medical Transcription Billing 0 0 1 0 3.00
Omnicell 0 1 6 0 2.86

Medical Transcription Billing currently has a consensus price target of $2.75, suggesting a potential downside of 5.17%. Omnicell has a consensus price target of $54.86, suggesting a potential upside of 4.89%. Given Omnicell’s higher probable upside, analysts clearly believe Omnicell is more favorable than Medical Transcription Billing.

Risk and Volatility

Medical Transcription Billing has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, Omnicell has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Insider & Institutional Ownership

2.3% of Medical Transcription Billing shares are owned by institutional investors. Comparatively, 99.8% of Omnicell shares are owned by institutional investors. 53.7% of Medical Transcription Billing shares are owned by company insiders. Comparatively, 3.8% of Omnicell shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Omnicell beats Medical Transcription Billing on 10 of the 13 factors compared between the two stocks.

About Medical Transcription Billing

Medical Transcription Billing, Corp. is a healthcare information technology company that provides an integrated suite of Web-based solutions, together with related business services, to healthcare providers practicing in ambulatory care settings. The Company’s offering, PracticePro, allows healthcare practices with the core software and business services on Software-as-a-Service (SaaS) platform. PracticePro includes practice management software and related tools, which facilitate the day-to-day operation of a medical practice; electronic health records (EHR), which allow its customers to qualify for government incentives; revenue cycle management (RCM) services, which include medical billing, analytics and related services, and mobile Health (mHealth) solutions, including smartphone applications that assist patients and healthcare providers in the provision of healthcare services. The Company offers a clearinghouse service, which allows clients to track claim status.

About Omnicell

Omnicell, Inc. provides automation and business analytics software solutions for patient-centric medication and supply management across the entire healthcare continuum, from the acute care hospital setting to post-acute skilled nursing and long-term care facilities to the home. It operates through two segments: Automation and Analytics, and Medication Adherence. The Automation and Analytics segment is engaged in the design, manufacturing, selling and servicing of medication and supply dispensing systems, pharmacy inventory management systems and related software. The Medication Adherence segment includes the development, manufacturing and selling of consumable medication blister cards, packaging equipment, medication synchronization platform, and ancillary products and services. Its products are used to manage medication administration outside of the hospital setting and include medication adherence products sold under the brand name MTS, Surgichem, SureMed and the Omnicell brand.

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