SOPHiA GENETICS (NASDAQ:SOPH – Get Free Report) and Evolent Health (NYSE:EVH – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for SOPHiA GENETICS and Evolent Health, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SOPHiA GENETICS | 1 | 1 | 3 | 0 | 2.40 |
| Evolent Health | 1 | 3 | 11 | 0 | 2.67 |
SOPHiA GENETICS currently has a consensus target price of $10.00, suggesting a potential upside of 28.45%. Evolent Health has a consensus target price of $6.11, suggesting a potential upside of 25.02%. Given SOPHiA GENETICS’s higher probable upside, equities analysts clearly believe SOPHiA GENETICS is more favorable than Evolent Health.
Profitability
This table compares SOPHiA GENETICS and Evolent Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SOPHiA GENETICS | -89.18% | -128.69% | -44.73% |
| Evolent Health | -21.67% | -6.07% | -1.23% |
Institutional and Insider Ownership
31.6% of SOPHiA GENETICS shares are owned by institutional investors. 4.9% of SOPHiA GENETICS shares are owned by insiders. Comparatively, 1.5% of Evolent Health shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
SOPHiA GENETICS has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Evolent Health has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.
Earnings & Valuation
This table compares SOPHiA GENETICS and Evolent Health”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SOPHiA GENETICS | $77.27 million | 8.45 | -$79.00 million | ($1.09) | -7.14 |
| Evolent Health | $1.88 billion | 0.29 | -$534.51 million | ($4.54) | -1.08 |
SOPHiA GENETICS has higher earnings, but lower revenue than Evolent Health. SOPHiA GENETICS is trading at a lower price-to-earnings ratio than Evolent Health, indicating that it is currently the more affordable of the two stocks.
About SOPHiA GENETICS
SOPHiA GENETICS is a healthcare technology company that develops data-analysis tools for genomics and other complex health data. Its cloud-based SOPHiA DDM platform uses artificial intelligence and analytics to help healthcare and research organizations interpret data and support clinical and scientific decision-making. The platform and related applications are used in areas including oncology, rare diseases and inherited conditions. The company serves hospitals, laboratories, biopharmaceutical companies and research organizations, with a presence across international markets.
About Evolent Health
Evolent Health, Inc. provides technology-enabled services to health plans and healthcare providers in the United States. The company helps clients manage care, coordinate services and support the delivery of healthcare, particularly for people with complex medical needs. Its offerings include specialty care management programs, clinical and administrative services, and technology that supports care decisions and operations. Evolent has focused on areas such as oncology, cardiology, musculoskeletal care and behavioral health.
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