Omnicell (NASDAQ:OMCL) and Press Ganey Holdings (PGND) Critical Review

Omnicell (NASDAQ: OMCL) and Press Ganey Holdings (NYSE:PGND) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Volatility and Risk

Omnicell has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Press Ganey Holdings has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Valuation & Earnings

This table compares Omnicell and Press Ganey Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Omnicell $680.15 million 2.70 $42.68 million ($0.22) -223.18
Press Ganey Holdings N/A N/A N/A $0.51 79.41

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Omnicell and Press Ganey Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Omnicell 0 1 6 0 2.86
Press Ganey Holdings 0 2 0 0 2.00

Omnicell currently has a consensus price target of $51.57, suggesting a potential upside of 5.03%. Given Omnicell’s stronger consensus rating and higher possible upside, research analysts plainly believe Omnicell is more favorable than Press Ganey Holdings.

Insider & Institutional Ownership

96.4% of Omnicell shares are owned by institutional investors. Comparatively, 91.9% of Press Ganey Holdings shares are owned by institutional investors. 3.8% of Omnicell shares are owned by company insiders. Comparatively, 5.1% of Press Ganey Holdings shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Omnicell and Press Ganey Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Omnicell -1.14% 0.41% 0.19%
Press Ganey Holdings 8.69% 5.46% 3.34%

Summary

Press Ganey Holdings beats Omnicell on 6 of the 11 factors compared between the two stocks.

Omnicell Company Profile

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.

Press Ganey Holdings Company Profile

Press Ganey Holdings, Inc. is a provider of patient experience and caregiver measurement, performance analytics and strategic advisory solutions for healthcare organizations. The Company provides its clients with a digital platform that captures the perspectives of patients, physicians, nurses and other healthcare employees and enables its clients to benchmark, analyze and manage the patient and caregiver experience. Its solutions include Patient Experience Solutions, which include Patient experience measurement, insights and advisory services; Caregiver Engagement Solutions, which include Physician, nurse and employee engagement measurement, insights and advisory services; Clinical and Quality Solutions, which include nursing quality indicators, patient reported outcome measures, core measures and eMeasures, and Consulting Solutions, which include patient safety and care reliability, patient experience improvement, process flow, advanced analytics and insights and cultural alignment.

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