Nextgen Healthcare (NASDAQ:NXGN) and Streamline Health Solutions (NASDAQ:STRM) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Profitability

This table compares Nextgen Healthcare and Streamline Health Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nextgen Healthcare 1.80% 10.66% 6.96%
Streamline Health Solutions -11.88% -27.49% -7.61%

Volatility & Risk

Nextgen Healthcare has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Streamline Health Solutions has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Nextgen Healthcare and Streamline Health Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nextgen Healthcare 1 1 2 0 2.25
Streamline Health Solutions 0 0 0 0 N/A

Nextgen Healthcare presently has a consensus target price of $18.50, indicating a potential upside of 10.12%. Given Nextgen Healthcare’s higher probable upside, equities research analysts clearly believe Nextgen Healthcare is more favorable than Streamline Health Solutions.

Institutional & Insider Ownership

71.6% of Nextgen Healthcare shares are owned by institutional investors. Comparatively, 44.6% of Streamline Health Solutions shares are owned by institutional investors. 17.9% of Nextgen Healthcare shares are owned by company insiders. Comparatively, 32.0% of Streamline Health Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Nextgen Healthcare and Streamline Health Solutions’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nextgen Healthcare $531.02 million 2.05 $2.42 million $0.57 29.47
Streamline Health Solutions $24.34 million 0.81 -$3.09 million N/A N/A

Nextgen Healthcare has higher revenue and earnings than Streamline Health Solutions.

Summary

Nextgen Healthcare beats Streamline Health Solutions on 10 of the 11 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.

Streamline Health Solutions Company Profile

Streamline Health Solutions, Inc. provides health information technology solutions and services for hospitals and health systems in the United States and Canada. It provides software-based solutions and auditing services, which captures, aggregates, and translates structured and unstructured data to deliver predictive insights to its clients. The company offers health information management, coding, and clinical documentation improvement (CDI) solutions, which include cloud-based software solutions, such as content management, release of information, computer-assisted coding, CDI, abstracting, and physician query; and eValuator, a cloud-based software as a service coding analysis platform. It also provides financial management solutions, including accounts receivable management, denials management, claims processing, spend management, and audit management; patient care solutions that enable healthcare providers to enhance their patient care; and custom integration, training, electronic image conversion, audit, and database monitoring services. The company sells its solutions and services through direct sales force and reseller partnerships. Streamline Health Solutions, Inc. was founded in 1989 and is based in Atlanta, Georgia.

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