Comparing Nextgen Healthcare (NASDAQ:NXGN) and Caci International (NASDAQ:CACI)

Nextgen Healthcare (NASDAQ:NXGN) and Caci International (NYSE:CACI) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Earnings & Valuation

This table compares Nextgen Healthcare and Caci International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nextgen Healthcare $529.17 million 1.92 $24.49 million $0.61 25.54
Caci International $4.47 billion 1.18 $301.17 million $7.84 26.94

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

Profitability

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

Net Margins Return on Equity Return on Assets
Nextgen Healthcare 4.37% 10.05% 6.85%
Caci International 5.59% 11.80% 5.92%

Risk and Volatility

Nextgen Healthcare has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Caci International has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Nextgen Healthcare and Caci International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nextgen Healthcare 2 1 3 0 2.17
Caci International 0 7 8 1 2.63

Nextgen Healthcare currently has a consensus target price of $19.20, suggesting a potential upside of 23.23%. Caci International has a consensus target price of $214.38, suggesting a potential upside of 1.49%. Given Nextgen Healthcare’s higher possible upside, analysts clearly believe Nextgen Healthcare is more favorable than Caci International.

Insider & Institutional Ownership

69.5% of Nextgen Healthcare shares are owned by institutional investors. Comparatively, 89.2% of Caci International shares are owned by institutional investors. 18.5% of Nextgen Healthcare shares are owned by company insiders. Comparatively, 1.5% of Caci International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Caci International beats Nextgen Healthcare on 11 of the 15 factors compared between the two stocks.

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.

About Caci International

CACI International Inc, together with its subsidiaries, provides information solutions and services in North America and internationally. The company offers business systems solutions in the areas of financial, human capital, asset and materials, and administrative management; develops, integrates, and operates command and control solutions; and develops and integrates solutions that deliver multi-level unified communications from the enterprise directly to and from the tactical edge. It also provides cyber security solutions, as well as supports cyber operations of federal customers and the intelligence community. In addition, the company offers enterprise-wide information solutions and services for the design, development, integration, deployment, operations and management, sustainment, and security of its customers' IT solutions; and supports federal civilian and military health missions that improve healthcare delivery systems, integrates electronic health records, and enhances health outcomes for communities and emergency responsiveness. Further, it provides intelligence services, such as intelligence analysis, operations and planning, policy, doctrine, and security support; and designs, develops, integrates, deploys, and prototypes hardware-and software-enabled tools and applications, as well as offers signals intelligence. Additionally, the company offers investigation and litigation support services; logistics and material readiness solutions, and professional services; space operations and resiliency support; and data and software products, as well as develops and integrates surveillance and reconnaissance technologies into platforms. It primarily serves the U.S. government, as well as other customers comprising state and local governments, commercial enterprises, and agencies of foreign governments. The company was founded in 1962 and is headquartered in Arlington, Virginia.

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