athenahealth (NASDAQ: ATHN) and Evolent Health (NYSE:EVH) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
Institutional & Insider Ownership
82.5% of Evolent Health shares are owned by institutional investors. 3.2% of athenahealth shares are owned by insiders. Comparatively, 8.8% of Evolent Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for athenahealth and Evolent Health, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
athenahealth currently has a consensus price target of $148.77, indicating a potential upside of 20.55%. Evolent Health has a consensus price target of $28.45, indicating a potential upside of 64.00%. Given Evolent Health’s stronger consensus rating and higher possible upside, analysts plainly believe Evolent Health is more favorable than athenahealth.
This table compares athenahealth and Evolent Health’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
athenahealth has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, Evolent Health has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.
Earnings & Valuation
This table compares athenahealth and Evolent Health’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|athenahealth||$1.15 billion||4.28||$127.70 million||$0.80||154.26|
|Evolent Health||$361.53 million||3.58||-$51.15 million||($1.21)||-14.34|
athenahealth has higher revenue and earnings than Evolent Health. Evolent Health is trading at a lower price-to-earnings ratio than athenahealth, indicating that it is currently the more affordable of the two stocks.
athenahealth beats Evolent Health on 8 of the 14 factors compared between the two stocks.
athenahealth, Inc. provides network-based medical record, revenue cycle, patient engagement, care coordination and population health services. The Company also offers Epocrates and other point-of-care mobile applications. The Company delivers majority of its service offerings through a single instance of cloud-based software, athenaNet. The Company has a range of network-enabled services to support healthcare providers across the continuum of care. The Company offers various combinations of its services to its clients, including athenaOne and athenaOne for Hospitals and Health Systems, depending on whether they are medical groups and practices or hospitals and larger health systems. As of December 31, 2016, the Company connected care across a national network of approximately 88,000 providers and approximately 86 million patients. Its suite of network-enabled services includes athenaCollector, athenaClinicals, athenaCommunicator, athenaCoordinator, Population Health and Epocrates.
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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