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

Risk & Volatility

Press Ganey Holdings has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Castlight Health, inc. has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500.

Institutional and Insider Ownership

91.9% of Press Ganey Holdings shares are owned by institutional investors. Comparatively, 41.3% of Castlight Health, inc. shares are owned by institutional investors. 5.1% of Press Ganey Holdings shares are owned by company insiders. Comparatively, 37.4% of Castlight Health, inc. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Press Ganey Holdings and Castlight Health, inc.’s top-line 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
Castlight Health, inc. $115.24 million 4.57 -$48.77 million ($0.45) -8.89

Press Ganey Holdings has higher revenue, but lower earnings than Castlight Health, inc.. Castlight Health, inc. 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 Ratings

This is a summary of current ratings for Press Ganey Holdings and Castlight Health, inc., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Press Ganey Holdings 0 2 0 0 2.00
Castlight Health, inc. 1 4 2 0 2.14

Castlight Health, inc. has a consensus target price of $4.63, suggesting a potential upside of 15.63%. Given Castlight Health, inc.’s stronger consensus rating and higher possible upside, analysts plainly believe Castlight Health, inc. is more favorable than Press Ganey Holdings.

Profitability

This table compares Press Ganey Holdings and Castlight Health, inc.’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%
Castlight Health, inc. -42.54% -36.30% -24.42%

Summary

Castlight Health, inc. beats Press Ganey Holdings on 6 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.

Castlight Health, inc. Company Profile

Castlight Health, Inc. offers a health benefits platform that engages employees to make healthcare decisions, and enables employers to communicate and measure their benefit programs. The Company operates through cloud-based products segment. Its technology offering aggregates data and applies analytics to make healthcare data transparent. Its products deliver employee engagement and enable employers to integrate benefit programs into a single platform available to employees and their families. Its health benefits platform engages external data and its substantial user base to provide a single, end-to-end solution that engages employees through personalized and relevant communications. Its offering provides employers the opportunity to communicate, measure, and get value out of their benefits and programs on a real-time basis. It offers cross-sell products, such as Castlight Action, Castlight Pharmacy, Castlight Dental, Castlight Elevate, Castlight Protect and Castlight Rewards.

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