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

Risk and Volatility

Simulations Plus has a beta of -0.7, suggesting that its share price is 170% less volatile than the S&P 500. Comparatively, Press Ganey Holdings has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Earnings & Valuation

This table compares Simulations Plus and Press Ganey Holdings’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Simulations Plus $21.83 million 13.15 $9.15 million $0.32 52.03
Press Ganey Holdings N/A N/A N/A $0.51 79.41

Simulations Plus has higher revenue and earnings than Press Ganey Holdings. Simulations Plus 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.

Institutional and Insider Ownership

32.2% of Simulations Plus shares are owned by institutional investors. Comparatively, 91.9% of Press Ganey Holdings shares are owned by institutional investors. 36.9% of Simulations Plus shares are owned by company insiders. Comparatively, 5.1% of Press Ganey Holdings 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Simulations Plus and Press Ganey Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Simulations Plus 0 0 0 0 N/A
Press Ganey Holdings 0 0 0 0 N/A

Profitability

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

Net Margins Return on Equity Return on Assets
Simulations Plus 30.82% 33.99% 28.62%
Press Ganey Holdings 8.69% 5.46% 3.34%

Dividends

Simulations Plus pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. Press Ganey Holdings does not pay a dividend. Simulations Plus pays out 62.5% of its earnings in the form of a dividend.

Summary

Simulations Plus beats Press Ganey Holdings on 6 of the 10 factors compared between the two stocks.

About Simulations Plus

Simulations Plus, Inc. (Simulations Plus) develops and produces software for use in pharmaceutical research and for education, and provides consulting and contract research services to the pharmaceutical industry. The Company offers five software products for pharmaceutical research. ADMET (Absorption, Distribution, Metabolism, Excretion and Toxicity) Predictor is a computer program that takes molecular structures as inputs and predicts over 140 different properties for them at the rate of about 200,000 compounds per hour. MedChem Designer includes a small set of ADMET Predictor property predictions, allowing the chemist to modify molecular structures. MedChem Studio is a tool for medicinal and computational chemists for both data mining and for designing new drug-like molecules. DDDPlus simulates in-vitro laboratory experiments used to measure the rate of dissolution of the drug. GastroPlus simulates the absorption, pharmacokinetics, and pharmacodynamics of drugs.

About Press Ganey Holdings

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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