Press Ganey Holdings (NYSE: PGND) and HealthEquity (NASDAQ:HQY) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.

Volatility and Risk

Press Ganey Holdings has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, HealthEquity has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.

Profitability

This table compares Press Ganey Holdings and HealthEquity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Press Ganey Holdings 8.69% 5.46% 3.34%
HealthEquity 17.04% 11.61% 11.06%

Insider and Institutional Ownership

91.9% of Press Ganey Holdings shares are held by institutional investors. Comparatively, 91.9% of HealthEquity shares are held by institutional investors. 5.1% of Press Ganey Holdings shares are held by insiders. Comparatively, 29.0% of HealthEquity shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Press Ganey Holdings and HealthEquity’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Press Ganey Holdings N/A N/A N/A $0.51 79.41
HealthEquity $189.78 million 13.52 $57.61 million $0.54 79.20

HealthEquity has higher revenue and earnings than Press Ganey Holdings. HealthEquity is trading at a lower price-to-earnings ratio than Press Ganey Holdings, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Press Ganey Holdings and HealthEquity, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Press Ganey Holdings 0 2 0 0 2.00
HealthEquity 0 1 11 0 2.92

HealthEquity has a consensus target price of $49.75, indicating a potential upside of 16.32%. Given HealthEquity’s stronger consensus rating and higher possible upside, analysts plainly believe HealthEquity is more favorable than Press Ganey Holdings.

Summary

HealthEquity beats Press Ganey Holdings on 11 of the 11 factors compared between the two stocks.

Press Ganey Holdings Company Profile

Press Ganey Holdings, Inc. is a provider of patient experience and caregiver measurement, performance analytics and strategic advisory solutions for healthcare organizations. The Company provides its clients with a digital platform that captures the perspectives of patients, physicians, nurses and other healthcare employees and enables its clients to benchmark, analyze and manage the patient and caregiver experience. Its solutions include Patient Experience Solutions, which include Patient experience measurement, insights and advisory services; Caregiver Engagement Solutions, which include Physician, nurse and employee engagement measurement, insights and advisory services; Clinical and Quality Solutions, which include nursing quality indicators, patient reported outcome measures, core measures and eMeasures, and Consulting Solutions, which include patient safety and care reliability, patient experience improvement, process flow, advanced analytics and insights and cultural alignment.

HealthEquity Company Profile

HealthEquity, Inc. provides a range of solutions for managing healthcare accounts (Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs)) for health plans, insurance companies and third-party administrators. The Company is engaged in technology-enabled services platforms that allow consumers to make healthcare saving and spending decisions. Its platform provides an ecosystem where consumers can access their tax-advantaged healthcare savings, compare treatment options and pricing, evaluate and pay healthcare bills, receive personalized benefit and clinical information, earn wellness incentives and make educated investment choices to help in their tax-advantaged healthcare savings. Its products and services include healthcare saving and spending platform, health savings accounts, investment advisory services, reimbursement arrangements and healthcare incentives. Its ecosystem primarily consists of HSA.

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