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

Valuation and Earnings

This table compares Socket Mobile and Omnicell’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Socket Mobile $21.29 million 0.53 -$1.43 million N/A N/A
Omnicell $716.16 million 3.97 $20.60 million $0.18 398.89

Omnicell has higher revenue and earnings than Socket Mobile.

Profitability

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

Net Margins Return on Equity Return on Assets
Socket Mobile -18.74% -3.45% -2.57%
Omnicell 6.11% 7.91% 4.44%

Institutional and Insider Ownership

10.7% of Socket Mobile shares are owned by institutional investors. Comparatively, 98.8% of Omnicell shares are owned by institutional investors. 29.3% of Socket Mobile shares are owned by insiders. Comparatively, 3.7% of Omnicell shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Socket Mobile and Omnicell, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Socket Mobile 0 0 0 0 N/A
Omnicell 0 3 4 0 2.57

Omnicell has a consensus price target of $69.86, suggesting a potential downside of 2.71%. Given Omnicell’s higher probable upside, analysts plainly believe Omnicell is more favorable than Socket Mobile.

Risk and Volatility

Socket Mobile has a beta of -0.18, indicating that its share price is 118% less volatile than the S&P 500. Comparatively, Omnicell has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Summary

Omnicell beats Socket Mobile on 10 of the 11 factors compared between the two stocks.

Socket Mobile Company Profile

Socket Mobile, Inc. produces data capture products for mobile applications used in business mobility markets in the United States, Europe, Asia, and internationally. The company's products are incorporated into mobile applications used in mobile point of sale, enterprise mobility, asset tracking, control systems, logistics, event management, medical, and education. It provides cordless data capture devices that connect over Bluetooth and work with applications running on smartphones, mobile computers, and tablets; and software developer kits to mobile application developers to enable them to integrate its products into their applications. The company offers barcode scanning products for 1D imager and laser, and 2D barcode scanning in standard and durable cases. It is also developing D600, a contactless SmartTag reader writer version of its durable handheld barcode scanner that reads and writes various types of electronic SmartTags, including near field communications. In addition, the company offers SocketCare services program, which provides extended warranty and accidental breakage coverage for various products. It markets its products through a network of distributors and on-line resellers, application developers, and value added resellers. The company was formerly known as Socket Communications, Inc. and changed its name to Socket Mobile, Inc. in April 2008. Socket Mobile, Inc. was founded in 1992 and is headquartered in Newark, California.

Omnicell Company Profile

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.

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