Head to Head Contrast: HealthEquity (NASDAQ:HQY) and Pediatrix Medical Group (NYSE:MD)

Pediatrix Medical Group (NYSE:MD) and HealthEquity (NASDAQ:HQY) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Pediatrix Medical Group and HealthEquity, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pediatrix Medical Group	0	5	1	0	2.17
HealthEquity	1	1	11	1	2.86

Pediatrix Medical Group currently has a consensus price target of $22.50, suggesting a potential downside of 6.99%. HealthEquity has a consensus price target of $110.57, suggesting a potential upside of 30.05%. Given HealthEquity’s stronger consensus rating and higher possible upside, analysts clearly believe HealthEquity is more favorable than Pediatrix Medical Group.

Volatility and Risk

Pediatrix Medical Group has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, HealthEquity has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500.

Institutional and Insider Ownership

97.7% of Pediatrix Medical Group shares are owned by institutional investors. Comparatively, 99.6% of HealthEquity shares are owned by institutional investors. 1.8% of Pediatrix Medical Group shares are owned by insiders. Comparatively, 1.6% of HealthEquity shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Pediatrix Medical Group and HealthEquity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pediatrix Medical Group	9.02%	19.94%	8.02%
HealthEquity	17.25%	14.75%	9.22%

Valuation and Earnings

This table compares Pediatrix Medical Group and HealthEquity”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pediatrix Medical Group	$1.91 billion	1.04	$165.39 million	$2.06	11.74
HealthEquity	$1.31 billion	5.41	$215.20 million	$2.67	31.84

HealthEquity has lower revenue, but higher earnings than Pediatrix Medical Group. Pediatrix Medical Group is trading at a lower price-to-earnings ratio than HealthEquity, indicating that it is currently the more affordable of the two stocks.

Summary

HealthEquity beats Pediatrix Medical Group on 11 of the 15 factors compared between the two stocks.

About Pediatrix Medical Group

Pediatrix Medical Group, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians. The company also provides maternal-fetal care services, including inpatient and office-based clinical care to expectant mothers and unborn babies through affiliated maternal-fetal medicine subspecialists, as well as obstetricians and other clinicians, including maternal-fetal nurse practitioners, certified nurse mid-wives, sonographers, and genetic counselors. In addition, it offers pediatric cardiology care services comprising inpatient and office-based pediatric cardiology care of the fetus, infant, child, and adolescent patient with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through affiliated pediatric cardiologist subspecialists and other related clinical professionals, including pediatric nurse practitioners, echocardiographers, other diagnostic technicians, and exercise physiologists; and specialized cardiac care to the fetus, neonatal and pediatric patients. Further, the company provides other pediatric subspecialty care services, such as pediatric intensivists, pediatric hospitalists, pediatric surgeons, and pediatric ophthalmologists, as well as pediatric ear, nose, and throat physicians, pediatric gastroenterologists; and support services in the areas of hospitals, primarily in the pediatric emergency rooms, labor and delivery areas, and nursery and pediatric departments. The company was formerly known as MEDNAX, Inc. and changed its name to Pediatrix Medical Group, Inc. in July 2022. Pediatrix Medical Group, Inc. was founded in 1979 and is based in Sunrise, Florida.

About HealthEquity

HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, receive personalized benefit information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides investment platform; and online-only automated investment advisory services through Advisor, a Web-based tool. In addition, the company offers flexible spending accounts; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs. It serves clients through a direct sales force; benefits brokers and advisors; and a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. HealthEquity, Inc. was incorporated in 2002 and is based in Draper, Utah.