Comparing Nextgen Healthcare (NASDAQ:NXGN) & Agilysys (NASDAQ:AGYS)

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Agilysys (NASDAQ:AGYS) and Nextgen Healthcare (NASDAQ:NXGN) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Agilysys and Nextgen Healthcare, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Agilysys 0 0 2 0 3.00
Nextgen Healthcare 0 5 3 0 2.38

Agilysys presently has a consensus price target of $27.00, suggesting a potential upside of 1.47%. Nextgen Healthcare has a consensus price target of $15.57, suggesting a potential downside of 0.44%. Given Agilysys’ stronger consensus rating and higher possible upside, analysts clearly believe Agilysys is more favorable than Nextgen Healthcare.

Profitability

This table compares Agilysys and Nextgen Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Agilysys -8.95% -12.64% -7.98%
Nextgen Healthcare 4.37% 10.05% 6.85%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Agilysys $140.84 million 4.47 -$13.16 million ($0.57) -46.68
Nextgen Healthcare $529.17 million 1.93 $24.49 million $0.61 25.64

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

Institutional & Insider Ownership

79.6% of Agilysys shares are owned by institutional investors. Comparatively, 70.6% of Nextgen Healthcare shares are owned by institutional investors. 16.0% of Agilysys shares are owned by company insiders. Comparatively, 18.5% of Nextgen Healthcare shares are owned 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.

Risk and Volatility

Agilysys has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, Nextgen Healthcare has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Summary

Nextgen Healthcare beats Agilysys on 10 of the 14 factors compared between the two stocks.

Agilysys Company Profile

Agilysys, Inc., together with its subsidiaries, operates as a developer and marketer of hardware and software products and services to the hospitality industry in North America, Europe, the Asia-Pacific, and India. The company offers point-of-sale, property management, reservation and table management, inventory and procurement, workforce management, analytics, document management, and mobile and wireless solutions to streamline operations, and enhance efficiency and guest experience. It also provides support and maintenance of software and hardware products, and subscription services; and professional services. Agilysys, Inc. serves various sectors, including gaming; hotels, resorts, and cruise; foodservice management; and restaurants, universities, stadia, and healthcare. The company was formerly known as Pioneer-Standard Electronics, Inc. and changed its name to Agilysys, Inc. in 2003. Agilysys, Inc. was founded in 1963 and is headquartered in Alpharetta, Georgia.

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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