Head-To-Head Comparison: Progyny (NASDAQ:PGNY) versus Surgery Partners (NASDAQ:SGRY)

Surgery Partners (NASDAQ:SGRY) and Progyny (NASDAQ:PGNY) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Risk and Volatility

Surgery Partners has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500. Comparatively, Progyny has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Insider & Institutional Ownership

94.9% of Progyny shares are owned by institutional investors. 2.7% of Surgery Partners shares are owned by insiders. Comparatively, 9.4% of Progyny shares are owned 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.

Profitability

This table compares Surgery Partners and Progyny’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surgery Partners	-2.35%	1.28%	0.51%
Progyny	4.54%	11.37%	7.73%

Valuation & Earnings

This table compares Surgery Partners and Progyny”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surgery Partners	$3.31 billion	0.53	-$77.90 million	($0.62)	-21.66
Progyny	$1.29 billion	1.09	$58.52 million	$0.65	27.58

Progyny has lower revenue, but higher earnings than Surgery Partners. Surgery Partners is trading at a lower price-to-earnings ratio than Progyny, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Surgery Partners and Progyny, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surgery Partners	2	2	8	0	2.50
Progyny	0	4	9	0	2.69

Surgery Partners presently has a consensus target price of $23.36, suggesting a potential upside of 73.97%. Progyny has a consensus target price of $27.91, suggesting a potential upside of 55.66%. Given Surgery Partners’ higher possible upside, equities analysts plainly believe Surgery Partners is more favorable than Progyny.

Summary

Progyny beats Surgery Partners on 11 of the 14 factors compared between the two stocks.

About Surgery Partners

Surgery Partners, Inc., together with its subsidiaries, owns and operates a network of surgical facilities and ancillary services in the United States. The company provides ambulatory surgery centers and surgical hospitals that offer non-emergency surgical procedures in various specialties, including orthopedics and pain management, ophthalmology, gastroenterology, and general surgery. It offers diagnostic imaging, laboratory, obstetrics, oncology, pharmacy, physical therapy, and wound care; and ancillary services, including multi-specialty physician practices, urgent care facilities, and anesthesia services. In addition, it offers single- and multi-specialty facilities. Surgery Partners, Inc. was founded in 2004 and is headquartered in Brentwood, Tennessee.

About Progyny

Progyny, Inc., a benefits management company, specializes in fertility and family building benefits solutions in the United States. Its fertility benefits solution includes differentiated benefits plan design, personalized concierge-style member support services, and selective network of fertility specialists. The company also offers Progyny Rx, an integrated pharmacy benefits solution that provides its members with access to the medications needed during their treatment. In addition, it provides assistance service programs where various services can be offered through a reimbursement program, including adoption, surrogacy, doula, and travel reimbursement when travel is required to receive medical services. The company was formerly known as Auxogyn, Inc. and changed its name to Progyny, Inc. in 2015. Progyny, Inc. was incorporated in 2008 and is headquartered in New York, New York.