Nextgen Healthcare (NASDAQ:NXGN) and Science Applications International (NYSE:SAIC) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.
Valuation & Earnings
This table compares Nextgen Healthcare and Science Applications International’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nextgen Healthcare||$529.17 million||1.98||$24.49 million||$0.61||26.23|
|Science Applications International||$4.66 billion||1.02||$137.00 million||$5.04||15.91|
This is a summary of recent ratings and price targets for Nextgen Healthcare and Science Applications International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Science Applications International||0||3||6||0||2.67|
Nextgen Healthcare currently has a consensus target price of $19.20, indicating a potential upside of 20.00%. Science Applications International has a consensus target price of $95.88, indicating a potential upside of 19.59%. Given Nextgen Healthcare’s higher probable upside, equities research analysts plainly believe Nextgen Healthcare is more favorable than Science Applications International.
Science Applications International pays an annual dividend of $1.48 per share and has a dividend yield of 1.8%. Nextgen Healthcare does not pay a dividend. Science Applications International pays out 29.4% of its earnings in the form of a dividend.
This table compares Nextgen Healthcare and Science Applications International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Science Applications International||2.80%||25.89%||7.23%|
Institutional and Insider Ownership
69.5% of Nextgen Healthcare shares are held by institutional investors. Comparatively, 75.4% of Science Applications International shares are held by institutional investors. 18.5% of Nextgen Healthcare shares are held by company insiders. Comparatively, 1.6% of Science Applications International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Nextgen Healthcare has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Science Applications International has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.
Science Applications International beats Nextgen Healthcare on 10 of the 16 factors compared between the two stocks.
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.
Science Applications International Company Profile
Science Applications International Corp. engages in the provision of full life cycle services and solutions in the technical, engineering, intelligence, and enterprise information technology markets. It offers technology and equipment platform integration; maintenance of ground and maritime systems; logistics; training and simulation; operation and program support services; and end-to-end services such as the design, development, integration, deployment, management and operations, and sustainment and security of its customer’s information technology infrastructure. The company was founded by J. Robert Beyster in 1969 and is headquartered in McLean, VA.
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