Comparing HashiCorp (NASDAQ:HCP) and Doximity (NASDAQ:DOCS)

HashiCorp (NASDAQ:HCP) and Doximity (NASDAQ:DOCS) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Risk and Volatility

HashiCorp has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Doximity has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Institutional & Insider Ownership

86.3% of HashiCorp shares are held by institutional investors. Comparatively, 87.2% of Doximity shares are held by institutional investors. 22.5% of HashiCorp shares are held by company insiders. Comparatively, 37.4% of Doximity shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for HashiCorp and Doximity, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HashiCorp	0	3	0	0	2.00
Doximity	0	11	9	2	2.59

HashiCorp currently has a consensus target price of $35.00, indicating a potential upside of 0.63%. Doximity has a consensus target price of $63.11, indicating a potential upside of 2.29%. Given Doximity’s stronger consensus rating and higher possible upside, analysts plainly believe Doximity is more favorable than HashiCorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HashiCorp	-18.66%	-7.91%	-5.79%
Doximity	36.60%	21.75%	18.64%

Valuation & Earnings

This table compares HashiCorp and Doximity”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HashiCorp	$654.89 million	10.86	-$190.67 million	($0.61)	-57.02
Doximity	$570.40 million	20.31	$147.58 million	$1.11	55.58

Doximity has lower revenue, but higher earnings than HashiCorp. HashiCorp 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 HashiCorp on 14 of the 15 factors compared between the two stocks.

About HashiCorp

HashiCorp, Inc. engages in the provision of multi-cloud infrastructure automation solutions worldwide. The company offers infrastructure provisioning products, including Terraform, that enables IT operations teams to apply an Infrastructure-as-Code approach, where processes and configuration required to support applications are codified and automated instead of being manual and ticket-based; Packer, that provides a consistent way to define the process of transforming the raw source inputs into a production worthy artifact, across any environment or packaging format; and Vagrant, that allows teams to define how development environments are set up. It also provides security products, such as Vault, a secrets management and data protection product, which enables security teams to apply policies based on application and user identity to govern access to credentials and secure sensitive data; and Boundary, that applies an identity-based approach to privileged access management and unifies the controls to a single system. In addition, the company offers Consul, an application-centric networking automation product that enables practitioners to manage application traffic, security teams to secure and restrict access between applications, and operations teams to automate the underlying network infrastructure; Nomad, a scheduler and workload orchestrator, which provides practitioners with a self-service interface to manage the application lifecycle; and Waypoint, an application delivery product that provides a developer-focused workflow for the build, deploy, and release process. Further, it provides HashiCorp Cloud Platform, a fully-managed cloud platform for multiple products to accelerate enterprise cloud migration by addressing resource and skills gaps, improving operational efficiency, and speeding up deployment time for customers. The company was incorporated in 2012 and is headquartered in San Francisco, California.

About Doximity

Doximity, Inc. operates a cloud-based digital platform for medical professionals in the United States. The company's 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 manufacturers and healthcare 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.