Contrasting Pulmonx (NASDAQ:LUNG) & Omnicell (NASDAQ:OMCL)

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

Profitability

This table compares Omnicell and Pulmonx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omnicell	1.69%	4.10%	2.44%
Pulmonx	-61.91%	-77.58%	-37.90%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Omnicell and Pulmonx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnicell	1	3	4	0	2.38
Pulmonx	1	4	5	0	2.40

Omnicell presently has a consensus price target of $48.57, indicating a potential downside of 3.86%. Pulmonx has a consensus price target of $6.81, indicating a potential upside of 284.58%. Given Pulmonx’s stronger consensus rating and higher possible upside, analysts clearly believe Pulmonx is more favorable than Omnicell.

Institutional and Insider Ownership

97.7% of Omnicell shares are held by institutional investors. Comparatively, 91.0% of Pulmonx shares are held by institutional investors. 2.5% of Omnicell shares are held by company insiders. Comparatively, 6.8% of Pulmonx shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Omnicell and Pulmonx”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnicell	$1.11 billion	2.04	$12.53 million	$0.43	117.49
Pulmonx	$83.79 million	0.87	-$56.39 million	($1.41)	-1.26

Omnicell has higher revenue and earnings than Pulmonx. Pulmonx 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 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Pulmonx has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500.

Summary

Omnicell beats Pulmonx on 10 of the 14 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 Pulmonx

Pulmonx Corporation, a commercial-stage medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. The company offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. It also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. The company serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.