Analyzing DarioHealth (NASDAQ:DRIO) and Evolent Health (NYSE:EVH)

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

Earnings & Valuation

This table compares Evolent Health and DarioHealth”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolent Health	$1.88 billion	0.28	-$534.51 million	($4.57)	-1.01
DarioHealth	$22.36 million	2.97	-$41.71 million	($6.13)	-1.10

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Evolent Health and DarioHealth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolent Health	1	4	11	0	2.62
DarioHealth	1	1	2	0	2.25

Evolent Health presently has a consensus target price of $5.96, suggesting a potential upside of 29.38%. DarioHealth has a consensus target price of $10.00, suggesting a potential upside of 47.71%. Given DarioHealth’s higher probable upside, analysts clearly believe DarioHealth is more favorable than Evolent Health.

Insider and Institutional Ownership

33.4% of DarioHealth shares are owned by institutional investors. 1.5% of Evolent Health shares are owned by company insiders. Comparatively, 3.5% of DarioHealth shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Evolent Health has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, DarioHealth has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Profitability

This table compares Evolent Health and DarioHealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evolent Health	-24.08%	-4.27%	-1.06%
DarioHealth	-169.87%	-54.81%	-33.36%

Summary

Evolent Health beats DarioHealth on 8 of the 14 factors compared between the two stocks.

About Evolent Health

Evolent Health, Inc., through its subsidiary, Evolent Health LLC, offers specialty care management services in oncology, cardiology, and musculoskeletal markets in the United States. The company provides platform for health plan administration and value-based business infrastructure. It offers administrative services, such as health plan services, pharmacy benefits management, risk management, analytics and reporting, and leadership and management; and Identifi, a proprietary technology system that aggregates and analyzes data, manages care workflows, and engages patients. In addition, the company provides holistic total cost of care management. Evolent Health, Inc. was founded in 2011 and is headquartered in Arlington, Virginia.

About DarioHealth

DarioHealth Corp. operates as a digital health company in the United States, Canada, the European Union, Australia, and New Zealand. Its digital therapeutics platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health. The company offers Dario Evolve, a metabolic solution to address metabolic health needs, such as diabetes, pre-diabetes, hypertension, and weight management; Dario Move, which address most common musculoskeletal conditions; Dario Elevate, a behavioral health solution that optimizes access to evidence-based care; and Dario One, a full suite of chronic condition management solution; and Dario blood glucose monitoring systems. It also provides native devices, such as glucose meter, blood pressure cuff, digital scale, and biofeedback sensor device, as well as live coaching services. The company was formerly known as LabStyle Innovations Corp. and changed its name to DarioHealth Corp. in July 2016. DarioHealth Corp. was incorporated in 2011 and is based in New York, New York.