Critical Survey: Omnicell (OMCL) vs. Allscripts Healthcare Solutions (MDRX)

Allscripts Healthcare Solutions (NASDAQ: MDRX) and Omnicell (NASDAQ:OMCL) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Institutional and Insider Ownership

96.4% of Omnicell shares are owned by institutional investors. 0.8% of Allscripts Healthcare Solutions shares are owned by insiders. Comparatively, 3.8% of Omnicell shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Allscripts Healthcare Solutions has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Omnicell has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Profitability

This table compares Allscripts Healthcare Solutions and Omnicell’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allscripts Healthcare Solutions -33.56% -54.26% -15.13%
Omnicell -1.14% 0.41% 0.19%

Earnings and Valuation

This table compares Allscripts Healthcare Solutions and Omnicell’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Allscripts Healthcare Solutions $1.66 billion 1.39 $160.09 million ($1.06) -11.96
Omnicell $680.15 million 2.74 $42.68 million ($0.22) -227.73

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

Analyst Ratings

This is a summary of recent ratings for Allscripts Healthcare Solutions and Omnicell, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allscripts Healthcare Solutions 1 8 8 0 2.41
Omnicell 0 2 6 0 2.75

Allscripts Healthcare Solutions currently has a consensus price target of $14.50, indicating a potential upside of 14.35%. Omnicell has a consensus price target of $49.00, indicating a potential downside of 2.20%. Given Allscripts Healthcare Solutions’ higher possible upside, analysts clearly believe Allscripts Healthcare Solutions is more favorable than Omnicell.

Summary

Omnicell beats Allscripts Healthcare Solutions on 9 of the 14 factors compared between the two stocks.

About Allscripts Healthcare Solutions

Allscripts Healthcare Solutions, Inc. (Allscripts) delivers information technology (IT) solutions and services to help healthcare organizations. The Company operates through three segments: Clinical and Financial Solutions, Population Health, and Netsmart. The Clinical and Financial Solutions segment includes the sale of integrated clinical software applications and financial and information solutions. The Population Health segment includes the sale of health management and coordinated care solutions, which focus on hospitals, health systems, other care facilities and accountable care organizations (ACOs). The Netsmart segment provides software and technology solutions to the health and human services industry, which includes behavioral health, addiction treatment, intellectual and developmental disability services, child and family services and public health segments, as well as to post-acute home care organizations.

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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