Simulations Plus (SLP) versus Evolent Health (NYSE:EVH) Head to Head Comparison

Evolent Health (NYSE: EVH) and Simulations Plus (NASDAQ:SLP) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.

Earnings and Valuation

This table compares Evolent Health and Simulations Plus’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Evolent Health $361.53 million 3.15 -$51.15 million ($1.21) -15.21
Simulations Plus $21.83 million 11.02 $9.15 million $0.32 43.60

Simulations Plus has higher revenue, but lower earnings than Evolent Health. Evolent Health is trading at a lower price-to-earnings ratio than Simulations Plus, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Evolent Health and Simulations Plus, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Evolent Health 0 0 11 1 3.08
Simulations Plus 0 0 0 0 N/A

Evolent Health currently has a consensus target price of $30.33, suggesting a potential upside of 64.86%. Given Evolent Health’s higher possible upside, equities research analysts clearly believe Evolent Health is more favorable than Simulations Plus.

Volatility and Risk

Evolent Health has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Simulations Plus has a beta of -0.71, suggesting that its stock price is 171% less volatile than the S&P 500.

Institutional and Insider Ownership

73.2% of Evolent Health shares are owned by institutional investors. Comparatively, 28.5% of Simulations Plus shares are owned by institutional investors. 8.8% of Evolent Health shares are owned by company insiders. Comparatively, 36.9% of Simulations Plus shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Evolent Health and Simulations Plus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Evolent Health -17.57% -6.44% -5.13%
Simulations Plus 24.86% 23.21% 19.23%

Dividends

Simulations Plus pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. Evolent Health does not pay a dividend. Simulations Plus pays out 62.5% of its earnings in the form of a dividend.

Summary

Simulations Plus beats Evolent Health on 8 of the 15 factors compared between the two stocks.

About Evolent Health

Evolent Health, Inc. is engaged in healthcare delivery and payment. The Company supports health systems and physician organizations in their migration toward value-based care and population health management. The Company provides an end-to-end, technology-enabled services platform for providers. The Company’s platform, powered by its technology, processes and integrated services, enables providers to migrate their economic orientation from fee-for-service (FFS) reimbursement to payment models that reward value-based payment models. The Company’s services include providing its customers, with a population management platform, integrated data and analytics capabilities, pharmacy benefit management (PBM) services and comprehensive health plan administration services. Its value-based operations are empowered and supported by Identifi. Identifi is the Company’s technology platform that aggregates and analyzes data, manages care workflows and engages patients.

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.

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