Leidos (NYSE:LDOS) and Nextgen Healthcare (NASDAQ:NXGN) are both aerospace companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.
Institutional and Insider Ownership
72.6% of Leidos shares are held by institutional investors. Comparatively, 68.8% of Nextgen Healthcare shares are held by institutional investors. 1.1% of Leidos shares are held by company insiders. Comparatively, 17.9% of Nextgen Healthcare shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Leidos and Nextgen Healthcare’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Leidos||$10.17 billion||0.91||$366.00 million||$3.72||16.69|
|Nextgen Healthcare||$531.02 million||2.09||$2.42 million||$0.57||30.12|
Leidos has higher revenue and earnings than Nextgen Healthcare. Leidos is trading at a lower price-to-earnings ratio than Nextgen Healthcare, indicating that it is currently the more affordable of the two stocks.
Leidos pays an annual dividend of $1.28 per share and has a dividend yield of 2.1%. Nextgen Healthcare does not pay a dividend. Leidos pays out 34.4% of its earnings in the form of a dividend.
This table compares Leidos and Nextgen Healthcare’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings for Leidos and Nextgen Healthcare, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Leidos currently has a consensus price target of $77.50, indicating a potential upside of 24.84%. Nextgen Healthcare has a consensus price target of $18.50, indicating a potential upside of 7.75%. Given Leidos’ stronger consensus rating and higher possible upside, analysts clearly believe Leidos is more favorable than Nextgen Healthcare.
Risk & Volatility
Leidos has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500. Comparatively, Nextgen Healthcare has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.
Leidos beats Nextgen Healthcare on 12 of the 16 factors compared between the two stocks.
Leidos Holdings, Inc. provides services and solutions in the defense, intelligence, civil, and health markets primarily in the United States. The company operates through three segments: Defense Solutions, Civil, and Health. The Defense Solutions segment offers national security solutions and systems for air, land, sea, space, and cyberspace for the U.S. intelligence community, Department of Defense, military services, the U.S. Department of Homeland Security, and government agencies of U.S. allies abroad, as well as other federal, civilian, and commercial customers in national security industry. Its solutions include technology, intelligence systems, command and control, data analytics, logistics, and cybersecurity solutions, as well as intelligence analysis and operations support services to critical missions. The Civil segment provides systems integration services to Air Navigation Service providers, including the Federal Aviation Administration, Transportation Security Administration, and airport operators; vehicle and cargo inspection system, which enables the scanning of vehicles and cargo that produces a image using a low radiation dose; IT solutions in cloud computing, mobility, application modernization, DevOps, data center, network modernization, asset management, help desk operations, and digital workplace enablement; federal environment and infrastructure; and logistics services. The Health segment offers solutions to federal and commercial customers responsible for health and well-being of people worldwide, including complex systems integration, managed health services, enterprise IT transformation, and life sciences services. The company was founded in 1969 and is headquartered in Reston, Virginia.
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.
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