Omnicell (NASDAQ:OMCL) and Fulgent Genetics (NASDAQ:FLGT) Financial Analysis

Omnicell (NASDAQ:OMCL) and Fulgent Genetics (NASDAQ:FLGT) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Institutional and Insider Ownership

97.7% of Omnicell shares are held by institutional investors. Comparatively, 48.1% of Fulgent Genetics shares are held by institutional investors. 2.5% of Omnicell shares are held by insiders. Comparatively, 33.1% of Fulgent Genetics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Omnicell and Fulgent Genetics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnicell	0	3	4	0	2.57
Fulgent Genetics	0	1	2	0	2.67

Omnicell presently has a consensus target price of $46.71, suggesting a potential upside of 42.55%. Fulgent Genetics has a consensus target price of $25.33, suggesting a potential upside of 13.50%. Given Omnicell’s higher possible upside, equities research analysts clearly believe Omnicell is more favorable than Fulgent Genetics.

Valuation & Earnings

This table compares Omnicell and Fulgent Genetics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnicell	$1.11 billion	1.35	$12.53 million	$0.50	65.54
Fulgent Genetics	$283.47 million	2.41	-$42.71 million	($1.66)	-13.45

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

Risk and Volatility

Omnicell has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Fulgent Genetics has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Profitability

This table compares Omnicell and Fulgent Genetics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omnicell	2.01%	4.27%	2.44%
Fulgent Genetics	-16.83%	-2.26%	-2.10%

Summary

Omnicell beats Fulgent Genetics on 10 of the 13 factors compared between the two stocks.

About Omnicell

Omnicell, Inc., together with its subsidiaries, provides medication management solutions and adherence tools for healthcare systems and pharmacies the United States and internationally. The company offers point of care automation solutions to improve clinician workflows in patient care areas of the healthcare system; XT Series automated dispensing systems for medications and supplies used in nursing units and other clinical areas of the hospital, as well as specialized automated dispensing systems for operating room; and robotic dispensing systems for handling the stocking and retrieval of boxed medications. It also provides central pharmacy automation solutions; IV compounding robots; and inventory management software. In addition, the company provides single-dose automation solutions that fill and label a variety of patient-specific, single-dose medication blister packaging based on incoming prescriptions; fully automated and semi-automated filling equipment for institutional pharmacies to warrant automated packaging of medications; and medication blister card packaging and packaging supplies to enhance medication adherence in non-acute care settings. Further, it offers EnlivenHealth Patient Engagement, a web-based solutions. The company was formerly known as Omnicell Technologies, Inc. and changed its name to Omnicell, Inc. in 2001. Omnicell, Inc. was incorporated in 1992 and is headquartered in Fort Worth, Texas.

About Fulgent Genetics

Fulgent Genetics, Inc., together with its subsidiaries, provides clinical diagnostic and therapeutic development solutions to physicians and patients in the United States and internationally. The company’s clinical diagnostic solutions include molecular diagnostic testing; genetic testing; anatomic pathology laboratory tests and testing services, such as gastrointestinal pathology, dermatopathology, urologic pathology, breast pathology, neuropathology, and hematopathology; oncology tests and testing services; and sequencer services related to hereditary cancer, reproductive health, and other diseases. Its therapeutic development solutions focus on developing drug candidates for treating a range of cancers using a nanoencapsulation and targeted therapy platform to enhance the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The company operates picture genetics platform, which includes gene probes, data suppression and comparison algorithms, adaptive learning software, and proprietary laboratory information management systems that helps customers to identify health markers in their personal DNA. It serves insurance, hospitals, medical institutions, other laboratories, governmental bodies, payors, municipalities and large corporations, and patients. The company was formerly known as Fulgent Diagnostics, Inc. and changed its name to Fulgent Genetics, Inc. in August 2016. Fulgent Genetics, Inc. was founded in 2011 and is headquartered in El Monte, California.