Critical Survey: Evolent Health (EVH) vs. Its Peers

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

Valuation and Earnings

This table compares Evolent Health and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Evolent Health	$1.88 billion	-$534.51 million	-1.01
Evolent Health Competitors	$344.33 million	-$24.15 million	12.99

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

Analyst Ratings

This is a summary of recent recommendations for Evolent Health and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolent Health	1	4	11	0	2.62
Evolent Health Competitors	451	1532	2741	89	2.51

Evolent Health currently has a consensus price target of $6.11, indicating a potential upside of 32.62%. As a group, “Healthcare Technology” companies have a potential upside of 44.71%. Given Evolent Health’s peers higher probable upside, analysts clearly believe Evolent Health has less favorable growth aspects than its peers.

Insider and Institutional Ownership

42.4% of shares of all “Healthcare Technology” companies are owned by institutional investors. 1.5% of Evolent Health shares are owned by company insiders. Comparatively, 16.2% of shares of all “Healthcare Technology” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Evolent Health and its peers’ 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	-762.90%	-30.85%	-15.65%

Volatility & Risk

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

Summary

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

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.