Tabula Rasa HealthCare (NASDAQ: TRHC) and Evolent Health (NYSE:EVH) are both small-cap healthcare 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

25.3% of Tabula Rasa HealthCare shares are owned by institutional investors. Comparatively, 68.1% of Evolent Health shares are owned by institutional investors. 45.8% of Tabula Rasa HealthCare 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Tabula Rasa HealthCare -4.94% -10.59% -8.00%
Evolent Health -17.57% -6.44% -5.13%

Earnings and Valuation

This table compares Tabula Rasa HealthCare and Evolent Health’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tabula Rasa HealthCare $108.83 million 3.09 $2.26 million ($0.74) -26.28
Evolent Health $361.53 million 3.14 -$51.15 million ($1.21) -14.26

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Tabula Rasa HealthCare and Evolent Health, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tabula Rasa HealthCare 0 0 5 0 3.00
Evolent Health 0 0 11 1 3.08

Tabula Rasa HealthCare currently has a consensus price target of $18.75, indicating a potential downside of 3.60%. Evolent Health has a consensus price target of $30.33, indicating a potential upside of 75.85%. Given Evolent Health’s stronger consensus rating and higher possible upside, analysts plainly believe Evolent Health is more favorable than Tabula Rasa HealthCare.

Summary

Evolent Health beats Tabula Rasa HealthCare on 9 of the 13 factors compared between the two stocks.

About Tabula Rasa HealthCare

Tabula Rasa HealthCare, Inc. (Tabula Rasa), formerly CareKinesis, Inc., is a provider of patient-specific, data-driven technology and solutions that enable healthcare organizations to optimize medication regimens to improve patient outcomes, reduce hospitalizations and manage risk. The Company delivers its solutions through a suite of technology-enabled products and services for medication risk management, which includes bundled prescription fulfillment and adherence packaging services for client populations with complex prescription needs. It also provides risk adjustment services, which help its clients to properly characterize a patient’s acuity, or severity of health condition, and optimize the associated payments for care. The Company serves approximately 100 healthcare organizations that focus on populations with complex healthcare needs and extensive medication requirements. Its products and services are built around the Medication Risk Mitigation Matrix, or MRM Matrix.

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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