Head-To-Head Analysis: Doximity (NYSE:DOCS) and Evolent Health (NYSE:EVH)

Evolent Health (NYSE:EVH) and Doximity (NYSE:DOCS) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Institutional & Insider Ownership

87.2% of Doximity shares are held by institutional investors. 1.5% of Evolent Health shares are held by company insiders. Comparatively, 31.8% of Doximity shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Evolent Health and Doximity”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolent Health	$1.88 billion	0.25	-$534.51 million	($4.57)	-0.91
Doximity	$644.86 million	6.86	$196.05 million	$0.85	29.18

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

Volatility and Risk

Evolent Health has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Doximity has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Evolent Health and Doximity, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolent Health	1	4	11	0	2.62
Doximity	4	13	7	2	2.27

Evolent Health currently has a consensus price target of $5.96, indicating a potential upside of 43.13%. Doximity has a consensus price target of $32.18, indicating a potential upside of 29.77%. Given Evolent Health’s stronger consensus rating and higher probable upside, analysts plainly believe Evolent Health is more favorable than Doximity.

Profitability

This table compares Evolent Health and Doximity’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%
Doximity	25.48%	18.06%	15.40%

Summary

Doximity beats Evolent Health on 11 of the 15 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 Doximity

Doximity, Inc. operates a cloud-based digital platform for medical professionals in the United States. The company’s cloud-based platform provides its members with tools built for medical professionals, enabling them to collaborate with their colleagues, coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, and manage their careers. It primarily serves pharmaceutical companies and health systems. The company was formerly known as 3MD Communications, Inc. and changed its name to Doximity, Inc. in June 2010. Doximity, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.