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

Volatility & Risk

Omnicell has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Cray has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Omnicell 4.55% 4.11% 2.15%
Cray -33.80% -7.55% -5.31%

Earnings and Valuation

This table compares Omnicell and Cray’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Omnicell $716.16 million 2.81 $20.60 million $0.18 287.78
Cray $392.51 million 2.69 -$133.82 million ($1.01) -25.74

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

Analyst Ratings

This is a summary of recent recommendations for Omnicell and Cray, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Omnicell 0 2 4 0 2.67
Cray 0 0 4 0 3.00

Omnicell currently has a consensus price target of $56.67, indicating a potential upside of 9.40%. Cray has a consensus price target of $30.50, indicating a potential upside of 17.31%. Given Cray’s stronger consensus rating and higher probable upside, analysts plainly believe Cray is more favorable than Omnicell.

Insider and Institutional Ownership

100.0% of Omnicell shares are held by institutional investors. Comparatively, 99.4% of Cray shares are held by institutional investors. 3.7% of Omnicell shares are held by insiders. Comparatively, 4.1% of Cray shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Omnicell beats Cray on 8 of the 12 factors compared between the two stocks.

About Omnicell

Omnicell, Inc. provides automation and business analytics software solutions for medication and supply management in healthcare worldwide. The company operates through two segments, Automation and Analytics, and Medication Adherence. It offers Omnicell Automated Dispensing Cabinets, a dispensing system, which automates the management and dispensing of medications; SinglePointe, a software product that controls medications; AnywhereRN, a software which remotely queue medications from automated dispensing cabinets; Omnicell Analytics and Pandora Analytics reporting and data analytics tools; and Anesthesia Workstation that manages anesthesia supplies and medications. The company also provides XR2 Central Pharmacy System, a hospital pharmacy robotics system; Central and Satellite Pharmacy Manager, an automated pharmacy storage and retrieval system; Controlled Substance Management, a controlled substance inventory management system; OmniLinkRx, a prescription routing system; and WorkflowRx, an automated pharmacy storage, retrieval, and packaging system. In addition, it offers Omnicell Supply Management System, an automated dispensing system; Omnicell Tissue Center, which manages the chain of custody for bone and tissue specimens; OptiFlex MS that manages medical and surgical supplies; OptiFlex SS, a module for the perioperative areas; and OptiFlex CL, a module for the cardiac catheterization lab and other procedure areas. Further, the company provides IV Solutions; enterprise analytics and solutions; Omnicell Interface Software; Mach4 Pharma Systems Medimat, a robotic dispensing system; Omnicell SupplyX subscription software; RFID solutions; and consumable medication blister cards, packaging equipment, and ancillary products and services to institutional pharmacies. The company was formerly known as Omnicell Technologies, Inc. and changed its name to Omnicell, Inc. in 2001. Omnicell, Inc. was founded in 1992 and is headquartered in Mountain View, California.

About Cray

Cray Inc., together with its subsidiaries, designs, develops, manufactures, markets, and services computing systems, and data analytics and artificial intelligence solutions. It operates through Supercomputing, Storage and Data Management, Maintenance and Support, and Engineering Services and Other segments. The company offers a range of Cray XC series supercomputers, including Cray XC40, Cray XC50, and Cray XC50-AC; Cray CS series supercomputers comprises Cray CS500 and Cray CS-Storm; and analytics products, such as Cray Urika-GX platform used for production-class big data analytics workloads. It also provides storage and data management products comprising cray clusterstor storage systems that embeds the Lustre parallel file system and other software in an optimal configuration; and Cray DataWarp applications accelerator, a DataWarp technology that addresses a problem experienced by supercomputing customers. In addition, the company offers custom engineering solutions; and customer support services consisting of hardware and software maintenance, applications support, installation project management, system installation and de-installation, site preparation, and technical training for its systems, as well as ancillary services in application consulting, third-party software support, site engineering, on-site analysts for defined projects, and specialized training. Cray Inc. sells its products through direct sales force and a partner network of global and regional resellers. It serves clients ranging from government agencies or funded research laboratories, academic institutions, and commercial entities in North America, South America, Asia, Europe, the Middle East, Australia, and Africa. The company was formerly known as Tera Computer Company and changed its name to Cray Inc. in 2000. Cray Inc. was founded in 1987 and is headquartered in Seattle, Washington.

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