Head-To-Head Review: Nextgen Healthcare (NASDAQ:NXGN) vs. Aerohive Networks (HIVE)

Nextgen Healthcare (NASDAQ:NXGN) and Aerohive Networks (NYSE:HIVE) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Nextgen Healthcare and Aerohive Networks, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nextgen Healthcare 1 1 4 0 2.50
Aerohive Networks 0 1 0 0 2.00

Nextgen Healthcare currently has a consensus price target of $19.20, suggesting a potential upside of 1.37%. Given Nextgen Healthcare’s stronger consensus rating and higher probable upside, equities analysts plainly believe Nextgen Healthcare is more favorable than Aerohive Networks.

Valuation and Earnings

This table compares Nextgen Healthcare and Aerohive Networks’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nextgen Healthcare $531.02 million 2.31 $2.42 million $0.57 33.23
Aerohive Networks $154.91 million 1.25 -$18.34 million ($0.29) -11.90

Nextgen Healthcare has higher revenue and earnings than Aerohive Networks. Aerohive Networks 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 and Insider Ownership

71.5% of Nextgen Healthcare shares are owned by institutional investors. Comparatively, 59.1% of Aerohive Networks shares are owned by institutional investors. 17.9% of Nextgen Healthcare shares are owned by company insiders. Comparatively, 9.4% of Aerohive Networks shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Nextgen Healthcare has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Aerohive Networks has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Profitability

This table compares Nextgen Healthcare and Aerohive Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nextgen Healthcare 1.80% 10.66% 6.96%
Aerohive Networks -12.93% -94.44% -12.20%

Summary

Nextgen Healthcare beats Aerohive Networks on 14 of the 14 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 Aerohive Networks

Aerohive Networks, Inc., together with its subsidiaries, designs and develops cloud networking and enterprise Wi-Fi solutions in the Americas, Europe, the Middle East and Africa, and the Asia Pacific. The company provides hardware products, such as wireless access points, branch routers, and switches; tiered maintenance and support services comprising technical support, bug fixes, access to priority hardware replacement service, and unspecified upgrades; and Software as a Service subscriptions, including comparable maintenance and support services. Its cloud-based product comprises HiveManager, a network management application that features an updated user interface, improved troubleshooting, and expanded access to data and analytics, as well as an upgraded cloud-deployment platform. The company sells its products to industry verticals, including education, distributed enterprises, retail, hospitality, and healthcare through a network of authorized distributors, value-added resellers, and managed service providers. Aerohive Networks, Inc. was incorporated in 2006 and is headquartered in Milpitas, California.

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