Critical Analysis: Evolent Health (EVH) & Its Peers

Evolent Health (NYSE:EVH) is one of 93 publicly-traded companies in the “Healthcare Technology” industry, but how does it contrast to its competitors? We will compare Evolent Health to related businesses based on the strength of its risk, dividends, earnings, profitability, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares Evolent Health and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evolent Health	-21.67%	-6.07%	-1.23%
Evolent Health Competitors	-751.01%	-29.51%	-15.37%

Insider & Institutional Ownership

42.4% of shares of all “Healthcare Technology” companies are held by institutional investors. 1.5% of Evolent Health shares are held by insiders. Comparatively, 16.2% of shares of all “Healthcare Technology” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Evolent Health and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Evolent Health	$1.88 billion	-$534.51 million	-1.05
Evolent Health Competitors	$342.20 million	-$24.15 million	12.94

Evolent Health has higher revenue, but lower earnings than its competitors. Evolent Health is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings for Evolent Health and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolent Health	1	3	10	0	2.64
Evolent Health Competitors	454	1535	2747	89	2.51

Evolent Health presently has a consensus target price of $6.04, suggesting a potential upside of 26.51%. As a group, “Healthcare Technology” companies have a potential upside of 42.70%. Given Evolent Health’s competitors higher possible upside, analysts clearly believe Evolent Health has less favorable growth aspects than its competitors.

Volatility & Risk

Evolent Health has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Evolent Health’s competitors have a beta of 1.11, suggesting that their average share price is 11% more volatile than the S&P 500.

Summary

Evolent Health competitors beat Evolent Health on 7 of the 13 factors compared.

Evolent Health Company Profile

Evolent Health, Inc. provides technology-enabled services to health plans and healthcare providers in the United States. The company helps clients manage care, coordinate services and support the delivery of healthcare, particularly for people with complex medical needs. Its offerings include specialty care management programs, clinical and administrative services, and technology that supports care decisions and operations. Evolent has focused on areas such as oncology, cardiology, musculoskeletal care and behavioral health.