DarioHealth (NASDAQ:DRIO – Get Free Report) and Evolent Health (NYSE:EVH – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.
Volatility and Risk
DarioHealth has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Evolent Health has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.
Institutional and Insider Ownership
33.4% of DarioHealth shares are owned by institutional investors. 3.5% of DarioHealth shares are owned by company insiders. Comparatively, 1.5% of Evolent Health shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DarioHealth | $21.00 million | 3.18 | -$41.71 million | ($6.13) | -1.11 |
| Evolent Health | $2.10 billion | 0.22 | -$534.51 million | ($4.57) | -0.90 |
DarioHealth has higher earnings, but lower revenue 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.
Profitability
This table compares DarioHealth and Evolent Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DarioHealth | -169.87% | -54.81% | -33.36% |
| Evolent Health | -24.08% | -4.27% | -1.06% |
Analyst Recommendations
This is a summary of recent recommendations for DarioHealth and Evolent Health, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DarioHealth | 1 | 1 | 2 | 0 | 2.25 |
| Evolent Health | 1 | 4 | 11 | 0 | 2.62 |
DarioHealth currently has a consensus price target of $10.00, indicating a potential upside of 46.63%. Evolent Health has a consensus price target of $5.96, indicating a potential upside of 44.59%. Given DarioHealth’s higher possible upside, research analysts plainly believe DarioHealth is more favorable than Evolent Health.
Summary
Evolent Health beats DarioHealth on 8 of the 14 factors compared between the two stocks.
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.
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.
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