Financial Review: OptimizeRx (NASDAQ:OPRX) versus Certara (NASDAQ:CERT)

OptimizeRx (NASDAQ:OPRX) and Certara (NASDAQ:CERT) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Profitability

This table compares OptimizeRx and Certara’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OptimizeRx	4.66%	9.44%	7.11%
Certara	-16.75%	3.86%	2.65%

Analyst Ratings

This is a summary of current ratings and target prices for OptimizeRx and Certara, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OptimizeRx	1	2	6	0	2.56
Certara	1	6	4	1	2.42

OptimizeRx presently has a consensus price target of $11.57, suggesting a potential upside of 31.34%. Certara has a consensus price target of $8.45, suggesting a potential downside of 8.85%. Given OptimizeRx’s stronger consensus rating and higher possible upside, analysts plainly believe OptimizeRx is more favorable than Certara.

Risk and Volatility

OptimizeRx has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Certara has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Institutional and Insider Ownership

76.5% of OptimizeRx shares are owned by institutional investors. Comparatively, 74.0% of Certara shares are owned by institutional investors. 7.5% of OptimizeRx shares are owned by insiders. Comparatively, 1.1% of Certara shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptimizeRx	$109.43 million	1.52	$5.13 million	$0.23	38.30
Certara	$418.84 million	3.38	-$1.60 million	($0.45)	-20.60

OptimizeRx has higher earnings, but lower revenue than Certara. Certara is trading at a lower price-to-earnings ratio than OptimizeRx, indicating that it is currently the more affordable of the two stocks.

Summary

OptimizeRx beats Certara on 11 of the 15 factors compared between the two stocks.

About OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.

About Certara

Certara, Inc., together with its subsidiaries, provides software products and technology-enabled services to customers for biosimulation in drug discovery, preclinical and clinical research, regulatory submissions, and market access in the United States and internationally. It offers solutions for model-informed drug development, as well as biosimulation solution used to predict both pharmacokinetics and pharmacodynamics. The company provides Simcyp Simulator, a mechanistic biosimulation platform mechanistic biosimulation investigational new drug and translational stages; Simcyp Biopharmaceutics, used to identify and refine drug formulations; and Simcyp Secondary Intelligence which integrates toxicology with quantitative analysis of networks of molecular and functional biological changes to identify drug toxicity and adverse drug reactions. In addition, it offers Phoenix WinNonlin, a platform for non-compartmental analysis, pharmacokinetic/pharmacodynamic, and toxicokinetic; phoenix hosted, that provides a secured and validated certara amazon web services workspace; Phoenix NLME, a population modeling and simulation software for nonlinear mixed effects models; and pirana modeling workbench. Further, the company provides pinnacle 21, a cloud-based platform for clinical data automation, standardization, and validation; Pinnacle 21 Data Exchange, used to define data standards and specifications; and Metadata Repository, to enable study design using controlled and standardized data. It serves life sciences companies, biopharmaceutical companies, research organizations, academic institutions, and global regulators, as well as animal health, crop science, bio science, medical devices, and public sector industries. Certara Inc. was founded in 2008 and is headquartered in Princeton, New Jersey.