Analyzing athenahealth (ATHN) & Press Ganey (PGND)

athenahealth (NASDAQ: ATHN) and Press Ganey (NYSE:PGND) are both mid-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
athenahealth 2.65% 6.78% 3.83%
Press Ganey 8.69% 5.46% 3.34%

Insider & Institutional Ownership

91.9% of Press Ganey shares are held by institutional investors. 3.2% of athenahealth shares are held by insiders. Comparatively, 5.1% of Press Ganey shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for athenahealth and Press Ganey, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
athenahealth 1 13 10 0 2.38
Press Ganey 0 0 0 0 N/A

athenahealth presently has a consensus price target of $141.77, indicating a potential upside of 5.97%. Given athenahealth’s higher probable upside, equities analysts clearly believe athenahealth is more favorable than Press Ganey.

Earnings & Valuation

This table compares athenahealth and Press Ganey’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
athenahealth $1.08 billion 4.94 $21.00 million $0.77 173.74
Press Ganey N/A N/A N/A $0.51 79.41

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

Summary

athenahealth beats Press Ganey on 6 of the 9 factors compared between the two stocks.

About athenahealth

athenahealth, Inc. provides network-based medical record, revenue cycle, patient engagement, care coordination and population health services. The Company also offers Epocrates and other point-of-care mobile applications. The Company delivers majority of its service offerings through a single instance of cloud-based software, athenaNet. The Company has a range of network-enabled services to support healthcare providers across the continuum of care. The Company offers various combinations of its services to its clients, including athenaOne and athenaOne for Hospitals and Health Systems, depending on whether they are medical groups and practices or hospitals and larger health systems. As of December 31, 2016, the Company connected care across a national network of approximately 88,000 providers and approximately 86 million patients. Its suite of network-enabled services includes athenaCollector, athenaClinicals, athenaCommunicator, athenaCoordinator, Population Health and Epocrates.

About Press Ganey

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.

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