Analyzing Altaba (AABA) & Nextgen Healthcare (NXGN)

Altaba (NASDAQ:AABA) and Nextgen Healthcare (NASDAQ:NXGN) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Risk & Volatility

Altaba has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, Nextgen Healthcare has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Earnings & Valuation

This table compares Altaba and Nextgen Healthcare’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Altaba $5.17 billion 7.27 -$214.32 million N/A N/A
Nextgen Healthcare $531.02 million 1.95 $2.42 million $0.57 28.11

Nextgen Healthcare has lower revenue, but higher earnings than Altaba.

Profitability

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

Net Margins Return on Equity Return on Assets
Altaba N/A N/A N/A
Nextgen Healthcare 1.17% 10.23% 6.60%

Analyst Ratings

This is a breakdown of current recommendations for Altaba and Nextgen Healthcare, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altaba 0 2 4 0 2.67
Nextgen Healthcare 1 1 1 0 2.00

Altaba presently has a consensus target price of $95.80, indicating a potential upside of 53.53%. Nextgen Healthcare has a consensus target price of $18.33, indicating a potential upside of 14.44%. Given Altaba’s stronger consensus rating and higher probable upside, research analysts plainly believe Altaba is more favorable than Nextgen Healthcare.

Institutional and Insider Ownership

68.2% of Nextgen Healthcare shares are held by institutional investors. 0.0% of Altaba shares are held by insiders. Comparatively, 17.9% of Nextgen Healthcare shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

About Altaba

Altaba Inc. operates as a non-diversified, closed-end management investment company in the United States. Its assets consist primarily of equity investments, short-term debt investments, and cash. The company was formerly known as Yahoo! Inc. and changed its name to Altaba Inc. in June 2017. Altaba Inc. was founded in 1994 and is based in New York, New York.

About Nextgen Healthcare

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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