Comparing Evolent Health (NYSE:EVH) & Doximity (NYSE:DOCS)

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

Volatility and Risk

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Doximity	25.48%	18.06%	15.40%
Evolent Health	-24.08%	-4.27%	-1.06%

Earnings and Valuation

This table compares Doximity and Evolent Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Doximity	$644.86 million	7.28	$196.05 million	$0.85	30.98
Evolent Health	$2.10 billion	0.23	-$534.51 million	($4.57)	-0.95

Doximity has higher earnings, but lower revenue 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.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Doximity	4	12	7	2	2.28
Evolent Health	1	4	11	0	2.62

Doximity currently has a consensus price target of $32.43, indicating a potential upside of 23.16%. Evolent Health has a consensus price target of $5.96, indicating a potential upside of 38.06%. Given Evolent Health’s stronger consensus rating and higher probable upside, analysts clearly believe Evolent Health is more favorable than Doximity.

Insider and Institutional Ownership

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

Summary

Doximity beats Evolent Health on 11 of the 15 factors compared between the two stocks.

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.

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.