Veradigm Inc. (MDRX) vs Phreesia, Inc. (PHR)

Veradigm Inc. and Phreesia, Inc. are both Health Information Services companies. Veradigm Inc. and Phreesia, Inc. are of similar size ($654.5M and $620.7M). Veradigm Inc. has negative trailing earnings, so its P/E is not meaningful; Phreesia, Inc. trades at 59.7×. Phreesia, Inc. grew revenue faster over the last twelve months: 12.9% against 1.83%. Phreesia, Inc. has the higher net margin (2.06% vs −14.7%) and the higher return on invested capital (1.74% vs −2.20%). Across the 20 metrics below, Veradigm Inc. leads on 10 and Phreesia, Inc. on 10.

Valuation

Metric MDRX PHR Health Information Services median
P/E n/m 59.71 39.52
P/S 0.96 1.24 2.65
P/B 0.55 1.69 2.32
Price to free cash flow 6.67 9.30 16.77
EV/EBITDA 4.11 13.19 12.35
EV/Sales 0.55 1.39 3.06
Earnings yield (15.31%) 1.67% (1.68%)
Free cash flow yield 15.00% 10.75% 0.54%

Profitability

Metric MDRX PHR Health Information Services median
Gross margin 52.45% 67.52% 63.38%
Operating margin (4.61%) 2.47% (8.35%)
Net margin (14.70%) 2.06% (14.70%)
Free cash flow margin 14.38% 13.30% 0.58%
Return on equity (7.27%) 3.12% (6.82%)
Return on assets (4.53%) 1.98% (6.02%)
Return on invested capital (2.20%) 1.74% 0.00%

Growth

Metric MDRX PHR Health Information Services median
Revenue growth (TTM) 1.83% 12.93% 8.62%
EPS growth (last fiscal year) (783.10%) 103.92% —
Revenue growth, 5-year CAGR (18.30%) 26.45% 12.36%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MDRX PHR Health Information Services median
Debt to equity 0.20 0.41 0.01
Current ratio 2.95 1.76 2.37
Net debt to EBITDA 0.48 3.58 0.50

Dividend

Metric MDRX PHR Health Information Services median
Dividend yield — — 0.85%
Payout ratio 0.00 0.00 0.00

Size

Metric MDRX PHR Health Information Services median
Market cap 654.47m 620.71m 352.86m

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