NantHealth (NASDAQ: NH) and Evolent Health (NYSE:EVH) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NantHealth $100.38 million 3.29 -$184.10 million ($1.78) -1.71
Evolent Health $254.19 million 3.96 -$159.74 million ($1.13) -11.50

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

Profitability

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

Net Margins Return on Equity Return on Assets
NantHealth -225.76% -46.09% -25.23%
Evolent Health -15.86% -5.05% -3.96%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for NantHealth and Evolent Health, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NantHealth 0 0 4 0 3.00
Evolent Health 0 0 13 0 3.00

NantHealth currently has a consensus price target of $9.00, suggesting a potential upside of 195.08%. Evolent Health has a consensus price target of $28.00, suggesting a potential upside of 115.38%. Given NantHealth’s higher possible upside, equities research analysts plainly believe NantHealth is more favorable than Evolent Health.

Institutional & Insider Ownership

7.1% of NantHealth shares are held by institutional investors. Comparatively, 95.4% of Evolent Health shares are held by institutional investors. 58.0% of NantHealth shares are held by company insiders. Comparatively, 8.8% of Evolent Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

NantHealth has a beta of -1.51, suggesting that its stock price is 251% less volatile than the S&P 500. Comparatively, Evolent Health has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Summary

Evolent Health beats NantHealth on 10 of the 12 factors compared between the two stocks.

About NantHealth

NantHealth, Inc. is a healthcare cloud-based information technology (IT) company. The Company is engaged in converging science and technology through a single integrated clinical platform, to provide actionable health information at the point of care. The Company offers the Genomic Proteomic Spectrometry (GPS) Cancer test, a molecular test and decision support solution that measures the proteins present in the patient’s tumor tissue, combined with whole genomic and transcriptomic sequencing of tumor and normal samples. The Company also offers Nant Operating System (NantOS) and NantOS applications to healthcare providers and payors, self-insured employers and biopharmaceutical companies. It offers CLINICS, an integrated solution that includes GPS Cancer, NantOS and the NantOS applications. The CLINICS solution includes System Infrastructure, Knowledge Platform, Provider Platform and Payor Platform.

About Evolent Health

Evolent Health, Inc. is engaged in healthcare delivery and payment. The Company supports health systems and physician organizations in their migration toward value-based care and population health management. The Company provides an end-to-end, technology-enabled services platform for providers. The Company’s platform, powered by its technology, processes and integrated services, enables providers to migrate their economic orientation from fee-for-service (FFS) reimbursement to payment models that reward value-based payment models. The Company’s services include providing its customers, with a population management platform, integrated data and analytics capabilities, pharmacy benefit management (PBM) services and comprehensive health plan administration services. Its value-based operations are empowered and supported by Identifi. Identifi is the Company’s technology platform that aggregates and analyzes data, manages care workflows and engages patients.

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