Head to Head Review: Nextgen Healthcare (NXGN) versus Its Rivals

Nextgen Healthcare (NASDAQ: NXGN) is one of 41 public companies in the “Computer integrated systems design” industry, but how does it contrast to its rivals? We will compare Nextgen Healthcare to similar businesses based on the strength of its risk, institutional ownership, valuation, analyst recommendations, earnings, profitability and dividends.

Volatility and Risk

Nextgen Healthcare has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Nextgen Healthcare’s rivals have a beta of -36.00, suggesting that their average share price is 3,700% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Nextgen Healthcare and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nextgen Healthcare 1 1 1 0 2.00
Nextgen Healthcare Competitors 327 1538 2176 70 2.48

Nextgen Healthcare presently has a consensus price target of $18.33, indicating a potential upside of 13.94%. As a group, “Computer integrated systems design” companies have a potential upside of 27.92%. Given Nextgen Healthcare’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Nextgen Healthcare has less favorable growth aspects than its rivals.

Profitability

This table compares Nextgen Healthcare and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nextgen Healthcare 1.17% 10.23% 6.60%
Nextgen Healthcare Competitors -5.57% 1.65% 0.70%

Institutional & Insider Ownership

68.2% of Nextgen Healthcare shares are owned by institutional investors. Comparatively, 63.5% of shares of all “Computer integrated systems design” companies are owned by institutional investors. 17.9% of Nextgen Healthcare shares are owned by insiders. Comparatively, 14.9% of shares of all “Computer integrated systems design” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Nextgen Healthcare and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Nextgen Healthcare $531.02 million $2.42 million 28.23
Nextgen Healthcare Competitors $1.52 billion $56.18 million 20.78

Nextgen Healthcare’s rivals have higher revenue and earnings than Nextgen Healthcare. Nextgen Healthcare is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Nextgen Healthcare beats its rivals on 7 of the 13 factors compared.

Nextgen Healthcare Company Profile

NextGen Healthcare, Inc. provides software, services, and analytics solutions to medical and dental group practices in the United States. The company's principal products include NextGen Enterprise EHR, which stores and maintains clinical patient information; and a workflow module, prescription management, automatic document and letter generation, patient education, referral tracking, interfaces to billing and lab systems, physician alerts and reminders, and reporting and data analysis tools. Its products also comprise NextGen Enterprise PM, a practice management (PM) solution; and NextGen Office, a cloud-based electronic health record and PM solution. In addition, the company offers automation and workflow solutions, including NextGen Mobile Health Solutions, NextGen Electronic Healthcare Transactions, NextGen Pre-Service Clearance, and NextGen Patient Payment solutions. Further, it provides analytics, population health, and patient engagement solutions, such as NextGen Population Health Informed Analytics, NextGen Population Health Patient Care Coordination, NextGen Population Health Performance Management, and NextGen Patient Portal solutions. Additionally, the company offers NextGen Connected Health and NextGen Share interoperability solutions. It also provides professional services, including training, project management, functional and detailed specification preparation, configuration, testing, installation, support, and client services. It serves physician hospital and management service organizations, independent physician associations, accountable care organizations, ambulatory care centers, and community health centers through a sales force and reseller channel. NextGen Healthcare, Inc. has a strategic partnership with OTTO Health LLC. The company was formerly known as Quality Systems, Inc. and changed its name to NextGen Healthcare, Inc. in September 2018. NextGen Healthcare, Inc. was founded in 1974 and is headquartered in Irvine, California.

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