Critical Analysis: Evolent Health (NYSE:EVH) versus Waystar (NASDAQ:WAY)

Waystar (NASDAQ:WAY – Get Free Report) and Evolent Health (NYSE:EVH – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Waystar and Evolent Health, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Waystar 0 4 18 2 2.92
Evolent Health 1 4 11 0 2.62

Waystar currently has a consensus target price of $34.67, indicating a potential upside of 39.73%. Evolent Health has a consensus target price of $5.96, indicating a potential upside of 71.68%. Given Evolent Health’s higher probable upside, analysts clearly believe Evolent Health is more favorable than Waystar.

Valuation & Earnings

This table compares Waystar and Evolent Health”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Waystar $1.21 billion 3.95 $112.09 million $0.70 35.44
Evolent Health $1.88 billion 0.21 -$534.51 million ($4.57) -0.76

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

Profitability

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

Net Margins Return on Equity Return on Assets
Waystar 11.18% 7.03% 4.75%
Evolent Health -24.08% -4.27% -1.06%

Volatility & Risk

Waystar has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, Evolent Health has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Summary

Waystar beats Evolent Health on 10 of the 13 factors compared between the two stocks.

About Waystar

(Get Free Report)

Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.

About Evolent Health

(Get Free Report)

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.

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