Critical Survey: Pediatrix Medical Group (NYSE:MD) versus Progyny (NASDAQ:PGNY)

Pediatrix Medical Group (NYSE:MD) and Progyny (NASDAQ:PGNY) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Earnings and Valuation

This table compares Pediatrix Medical Group and Progyny”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pediatrix Medical Group	$1.91 billion	0.93	$165.39 million	$1.94	11.01
Progyny	$1.29 billion	1.08	$58.52 million	$0.65	26.12

Pediatrix Medical Group has higher revenue and earnings than Progyny. Pediatrix Medical Group is trading at a lower price-to-earnings ratio than Progyny, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pediatrix Medical Group and Progyny’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pediatrix Medical Group	8.64%	19.59%	7.75%
Progyny	4.54%	11.37%	7.73%

Volatility and Risk

Pediatrix Medical Group has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Progyny has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Institutional & Insider Ownership

97.7% of Pediatrix Medical Group shares are owned by institutional investors. Comparatively, 94.9% of Progyny shares are owned by institutional investors. 0.9% of Pediatrix Medical Group shares are owned by insiders. Comparatively, 9.4% of Progyny shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Pediatrix Medical Group and Progyny, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pediatrix Medical Group	0	5	1	1	2.43
Progyny	0	4	9	0	2.69

Pediatrix Medical Group presently has a consensus price target of $19.80, indicating a potential downside of 7.30%. Progyny has a consensus price target of $27.91, indicating a potential upside of 64.36%. Given Progyny’s stronger consensus rating and higher probable upside, analysts clearly believe Progyny is more favorable than Pediatrix Medical Group.

Summary

Pediatrix Medical Group beats Progyny on 8 of the 15 factors compared between the two stocks.

About Pediatrix Medical Group

Pediatrix Medical Group, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care services in the United States. It offers neonatal care services, such as clinical care to babies born prematurely or with complications within specific units at hospitals through neonatal physician subspecialists, neonatal nurse practitioners, and other pediatric clinicians. The company also provides maternal-fetal care services, including inpatient and office-based clinical care to expectant mothers and unborn babies through affiliated maternal-fetal medicine subspecialists, as well as obstetricians and other clinicians, including maternal-fetal nurse practitioners, certified nurse mid-wives, sonographers, and genetic counselors. In addition, it offers pediatric cardiology care services comprising inpatient and office-based pediatric cardiology care of the fetus, infant, child, and adolescent patient with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through affiliated pediatric cardiologist subspecialists and other related clinical professionals, including pediatric nurse practitioners, echocardiographers, other diagnostic technicians, and exercise physiologists; and specialized cardiac care to the fetus, neonatal and pediatric patients. Further, the company provides other pediatric subspecialty care services, such as pediatric intensivists, pediatric hospitalists, pediatric surgeons, and pediatric ophthalmologists, as well as pediatric ear, nose, and throat physicians, pediatric gastroenterologists; and support services in the areas of hospitals, primarily in the pediatric emergency rooms, labor and delivery areas, and nursery and pediatric departments. The company was formerly known as MEDNAX, Inc. and changed its name to Pediatrix Medical Group, Inc. in July 2022. Pediatrix Medical Group, Inc. was founded in 1979 and is based in Sunrise, Florida.

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.