Allscripts Healthcare Solutions (NASDAQ:MDRX) and NextGen Healthcare (NASDAQ:NXGN) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.
Institutional and Insider Ownership
71.3% of NextGen Healthcare shares are held by institutional investors. 1.4% of Allscripts Healthcare Solutions shares are held by insiders. Comparatively, 18.5% of NextGen Healthcare shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Allscripts Healthcare Solutions and NextGen Healthcare, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Allscripts Healthcare Solutions | 4 | 7 | 5 | 0 | 2.06 |
NextGen Healthcare | 1 | 6 | 5 | 0 | 2.33 |
Allscripts Healthcare Solutions currently has a consensus target price of $10.8667, suggesting a potential downside of 29.57%. NextGen Healthcare has a consensus target price of $16.50, suggesting a potential downside of 11.76%. Given NextGen Healthcare's stronger consensus rating and higher possible upside, analysts clearly believe NextGen Healthcare is more favorable than Allscripts Healthcare Solutions.
Volatility & Risk
Allscripts Healthcare Solutions has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, NextGen Healthcare has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
Earnings & Valuation
This table compares Allscripts Healthcare Solutions and NextGen Healthcare's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Allscripts Healthcare Solutions | $1.77 billion | 1.38 | $-182,180,000.00 | $0.47 | 32.83 |
NextGen Healthcare | $540.24 million | 2.32 | $7.50 million | $0.59 | 31.69 |
NextGen Healthcare has lower revenue, but higher earnings than Allscripts Healthcare Solutions. NextGen Healthcare is trading at a lower price-to-earnings ratio than Allscripts Healthcare Solutions, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Allscripts Healthcare Solutions and NextGen Healthcare's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Allscripts Healthcare Solutions | -2.77% | 5.80% | 2.26% |
NextGen Healthcare | 1.80% | 11.28% | 6.57% |
Summary
NextGen Healthcare beats Allscripts Healthcare Solutions on 12 of the 13 factors compared between the two stocks.