Omnicell (OMCL) and Super Micro Computer (SMCI) Critical Review

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

Earnings and Valuation

This table compares Omnicell and Super Micro Computer’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Omnicell $716.16 million 2.74 $20.60 million $0.18 280.56
Super Micro Computer $2.53 billion 0.51 $69.32 million $1.34 19.93

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

Volatility & Risk

Omnicell has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Super Micro Computer has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Insider & Institutional Ownership

100.0% of Omnicell shares are held by institutional investors. Comparatively, 85.5% of Super Micro Computer shares are held by institutional investors. 3.7% of Omnicell shares are held by insiders. Comparatively, 24.0% of Super Micro Computer shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Omnicell and Super Micro Computer’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%
Super Micro Computer N/A N/A N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for Omnicell and Super Micro Computer, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Omnicell 0 2 4 0 2.67
Super Micro Computer 0 6 1 0 2.14

Omnicell presently has a consensus price target of $56.67, suggesting a potential upside of 11.66%. Super Micro Computer has a consensus price target of $28.33, suggesting a potential upside of 6.12%. Given Omnicell’s stronger consensus rating and higher possible upside, research analysts plainly believe Omnicell is more favorable than Super Micro Computer.

Summary

Omnicell beats Super Micro Computer on 10 of the 14 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 Super Micro Computer

Super Micro Computer, Inc., together with its subsidiaries, develops and provides high performance server solutions based on modular and open architecture. It offers a range of server, storage, blade, workstation, and full rack solutions, as well as networking devices, server management software, and technology support and services. The company also provides a range of application optimized server solutions, including rackmount and blade server systems; and server subsystems and accessories comprising server boards, and chassis and power supplies, as well as other system accessories, including microprocessors, and memory and disc drives. In addition, it provides customer support services and hardware enhanced services. The company offers its products to data center, cloud computing, enterprise IT, big data, high performance computing, and Internet of Things/embedded markets. It sells its server systems, and server subsystems and accessories through direct sales force, as well as through distributors that comprise value added resellers and system integrators, and OEMs. The company has operations primarily in San Jose, California; the Netherlands; Taiwan; China; and Japan. Super Micro Computer, Inc. was founded in 1993 and is headquartered in San Jose, California.

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