NextGen Healthcare (NASDAQ:NXGN) versus WidePoint (NYSE:WYY) Head-To-Head Comparison

NextGen Healthcare (NASDAQ:NXGNGet Rating) and WidePoint (NYSE:WYYGet Rating) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Analyst Ratings

This is a breakdown of recent ratings and price targets for NextGen Healthcare and WidePoint, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NextGen Healthcare 0 1 2 0 2.67
WidePoint 0 0 0 0 N/A

NextGen Healthcare currently has a consensus target price of $23.00, indicating a potential upside of 35.14%. Given NextGen Healthcare’s higher probable upside, research analysts plainly believe NextGen Healthcare is more favorable than WidePoint.

Risk & Volatility

NextGen Healthcare has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, WidePoint has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Valuation and Earnings

This table compares NextGen Healthcare and WidePoint’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NextGen Healthcare $596.35 million 1.94 $1.62 million $0.01 1,703.70
WidePoint $87.34 million 0.20 $340,000.00 ($1.62) -1.22

NextGen Healthcare has higher revenue and earnings than WidePoint. WidePoint is trading at a lower price-to-earnings ratio than NextGen Healthcare, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NextGen Healthcare and WidePoint’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NextGen Healthcare -0.01% 8.20% 5.62%
WidePoint -15.39% 5.47% 2.96%

Insider & Institutional Ownership

73.8% of NextGen Healthcare shares are owned by institutional investors. Comparatively, 11.9% of WidePoint shares are owned by institutional investors. 4.5% of NextGen Healthcare shares are owned by company insiders. Comparatively, 6.6% of WidePoint shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

NextGen Healthcare beats WidePoint on 11 of the 13 factors compared between the two stocks.

About NextGen Healthcare

(Get Rating)

NextGen Healthcare, Inc. provides healthcare technology solutions in the United States. The company offers clinical care solutions, including NextGen Enterprise EHR; financial solutions, such as NextGen Enterprise PM; patient engagement solutions comprising NextGen Virtual Visits; integrated clinical care and financial solutions consisting of NextGen Office; interoperability solutions that include NextGen Share and Mirth Connect; data and analytics solutions, which comprise NextGen Health Data Hub; and value based care solutions, including NextGen Population Health Solutions. It also provides managed services, such as revenue cycle management services comprising billing and collections, electronic claims submission and denials management, electronic remittance and payment posting, and accounts receivable follow-up; and client and support services. Further, the company offers professional services consisting of training, project management, installation services, and application managed services; and consulting services that include physician, professional, and technical consulting; assisting clients to optimize their staffing and software solutions; enhancing financial and clinical outcomes; achieving regulatory requirements; and meeting the requirements of healthcare reform. It serves accountable care organizations, independent physician associations, managed service organizations, veterans service organizations, dental service organizations, ambulatory care centers, and community health centers through a direct 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 incorporated in 1974 and is headquartered in Atlanta, Georgia.

About WidePoint

(Get Rating)

WidePoint Corporation provides technology management as a service (TMaaS) to the government and business enterprises in North America and Europe. It offers TMaaS solutions through a federal government certified proprietary portal to manage, analyze, and protect communications assets, as well as deploy identity management solutions that provide secured virtual and physical access to restricted environments. The company provides telecom lifecycle management, mobile and identity management, and digital billing and analytics solutions. It also offers information technology as a service, including cybersecurity, cloud, network operation, and professional services. WidePoint Corporation was founded in 1991 and is headquartered in Fairfax, Virginia.

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