Nextgen Healthcare (NXGN) vs. Its Competitors Critical Comparison

Nextgen Healthcare (NASDAQ: NXGN) is one of 42 public companies in the “Computer integrated systems design” industry, but how does it weigh in compared to its competitors? We will compare Nextgen Healthcare to related companies based on the strength of its earnings, valuation, analyst recommendations, institutional ownership, profitability, risk and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Nextgen Healthcare and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nextgen Healthcare 1 1 1 0 2.00
Nextgen Healthcare Competitors 315 1514 2157 67 2.49

Nextgen Healthcare currently has a consensus target price of $19.50, indicating a potential upside of 29.40%. As a group, “Computer integrated systems design” companies have a potential upside of 19.80%. Given Nextgen Healthcare’s higher probable upside, equities research analysts clearly believe Nextgen Healthcare is more favorable than its competitors.

Earnings and Valuation

This table compares Nextgen Healthcare and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Nextgen Healthcare $531.02 million $2.42 million 26.44
Nextgen Healthcare Competitors $1.46 billion $55.79 million 24.34

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

Volatility & Risk

Nextgen Healthcare has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Nextgen Healthcare’s competitors have a beta of -35.17, suggesting that their average stock price is 3,617% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Nextgen Healthcare 1.17% 10.42% 6.66%
Nextgen Healthcare Competitors -4.69% -3.66% 0.47%

Insider and Institutional Ownership

69.2% of Nextgen Healthcare shares are owned by institutional investors. Comparatively, 63.9% of shares of all “Computer integrated systems design” companies are owned by institutional investors. 17.9% of Nextgen Healthcare shares are owned by company insiders. Comparatively, 14.8% of shares of all “Computer integrated systems design” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Nextgen Healthcare beats its competitors on 8 of the 13 factors compared.

About Nextgen Healthcare

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 principal 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. The company serves multi-specialty and small single specialty practices, including 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. 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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