Financial Analysis: Nextgen Healthcare (NXGN) & Its Rivals

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

Analyst Ratings

This is a summary of recent ratings and target prices for Nextgen Healthcare and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nextgen Healthcare 1 1 1 0 2.00
Nextgen Healthcare Competitors 319 1520 2164 67 2.49

Nextgen Healthcare currently has a consensus target price of $18.33, suggesting a potential upside of 20.14%. As a group, “Computer integrated systems design” companies have a potential upside of 20.30%. Given Nextgen Healthcare’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Nextgen Healthcare has less favorable growth aspects than its rivals.

Volatility and Risk

Nextgen Healthcare has a beta of 0.93, suggesting that its stock 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 stock price is 3,700% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Nextgen Healthcare $531.02 million $2.42 million 26.77
Nextgen Healthcare Competitors $1.52 billion $56.09 million 22.97

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.

Institutional & Insider Ownership

69.0% of Nextgen Healthcare shares are held by institutional investors. Comparatively, 61.5% of shares of all “Computer integrated systems design” companies are held by institutional investors. 17.9% of Nextgen Healthcare shares are held by company insiders. Comparatively, 14.8% of shares of all “Computer integrated systems design” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

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 -5.36% 0.88% 0.61%

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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