Phreesia (NYSE:PHR – Get Free Report) and PayPal (NASDAQ:PYPL – Get Free Report) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.
Profitability
This table compares Phreesia and PayPal’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Phreesia | -20.43% | -32.78% | -22.37% |
| PayPal | 13.04% | 23.67% | 5.83% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Phreesia and PayPal, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Phreesia | 0 | 0 | 12 | 0 | 3.00 |
| PayPal | 2 | 15 | 19 | 1 | 2.51 |
Institutional and Insider Ownership
92.1% of Phreesia shares are held by institutional investors. Comparatively, 68.3% of PayPal shares are held by institutional investors. 5.8% of Phreesia shares are held by insiders. Comparatively, 0.1% of PayPal shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Phreesia and PayPal”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Phreesia | $419.81 million | 3.55 | -$136.88 million | ($1.02) | -24.84 |
| PayPal | $31.80 billion | 2.01 | $4.15 billion | $4.01 | 16.31 |
PayPal has higher revenue and earnings than Phreesia. Phreesia is trading at a lower price-to-earnings ratio than PayPal, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Phreesia has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, PayPal has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.
Summary
PayPal beats Phreesia on 11 of the 15 factors compared between the two stocks.
About Phreesia
Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, a self-service intake tablets; and Arrivals Kiosks, an on-site kiosks. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is based in Wilmington, Delaware.
About PayPal
PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards. The company provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company was founded in 1998 and is headquartered in San Jose, California.
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