Contrasting Phreesia (NYSE:PHR) and Flywire (NASDAQ:FLYW)

Phreesia (NYSE:PHR) and Flywire (NASDAQ:FLYW) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Risk and Volatility

Phreesia has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Flywire has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Profitability

This table compares Phreesia and Flywire’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phreesia	-20.43%	-32.78%	-22.37%
Flywire	4.23%	2.49%	1.86%

Insider and Institutional Ownership

92.1% of Phreesia shares are held by institutional investors. Comparatively, 95.9% of Flywire shares are held by institutional investors. 5.8% of Phreesia shares are held by insiders. Comparatively, 3.9% of Flywire shares are held 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.

Earnings and Valuation

This table compares Phreesia and Flywire”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phreesia	$405.14 million	3.84	-$136.88 million	($1.47)	-18.20
Flywire	$475.14 million	4.66	-$8.57 million	$0.15	118.67

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Phreesia and Flywire, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phreesia	0	0	12	0	3.00
Flywire	0	4	10	1	2.80

Phreesia presently has a consensus price target of $31.00, indicating a potential upside of 15.89%. Flywire has a consensus price target of $25.29, indicating a potential upside of 42.05%. Given Flywire’s higher possible upside, analysts clearly believe Flywire is more favorable than Phreesia.

Summary

Flywire beats Phreesia on 12 of the 15 factors compared between the two stocks.

About Phreesia

Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, a self-service intake tablets; and Arrivals Kiosks, an on-site kiosks. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is based in Wilmington, Delaware.

About Flywire

Flywire Corporation, together with its subsidiaries, operates as a payments enablement and software company in the United States and internationally. Its payment platform and network, and vertical-specific software help clients to get paid and help their customers to pay. The company’s platform facilitates payment flows across multiple currencies, payment types, and payment options, as well as provides direct connections to alternative payment methods, such as Alipay, Boleto, PayPal/Venmo, and Trustly. It serves education, healthcare, travel, and business to business organizations. The company was formerly known as peerTransfer Corporation and changed its name to Flywire Corporation in December 2016. Flywire Corporation was incorporated in 2009 and is headquartered in Boston, Massachusetts.