Evolent Health (NYSE: EVH) and Omnicell (NASDAQ:OMCL) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Risk & Volatility

Evolent Health has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Omnicell has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Evolent Health -17.57% -6.44% -5.13%
Omnicell -1.14% 0.41% 0.19%

Earnings and Valuation

This table compares Evolent Health and Omnicell’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Evolent Health $361.53 million 3.85 -$51.15 million ($1.21) -15.41
Omnicell $680.15 million 2.88 $42.68 million ($0.22) -237.95

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

Insider & Institutional Ownership

82.5% of Evolent Health shares are owned by institutional investors. Comparatively, 96.4% of Omnicell shares are owned by institutional investors. 8.8% of Evolent Health shares are owned by company insiders. Comparatively, 3.8% of Omnicell 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.

Analyst Recommendations

This is a summary of current ratings and target prices for Evolent Health and Omnicell, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Evolent Health 0 0 12 1 3.08
Omnicell 0 1 6 0 2.86

Evolent Health presently has a consensus target price of $28.73, suggesting a potential upside of 54.03%. Omnicell has a consensus target price of $51.57, suggesting a potential downside of 1.49%. Given Evolent Health’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Evolent Health is more favorable than Omnicell.

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.

About Omnicell

Omnicell, Inc. provides automation and business analytics software solutions for patient-centric medication and supply management across the entire healthcare continuum, from the acute care hospital setting to post-acute skilled nursing and long-term care facilities to the home. It operates through two segments: Automation and Analytics, and Medication Adherence. The Automation and Analytics segment is engaged in the design, manufacturing, selling and servicing of medication and supply dispensing systems, pharmacy inventory management systems and related software. The Medication Adherence segment includes the development, manufacturing and selling of consumable medication blister cards, packaging equipment, medication synchronization platform, and ancillary products and services. Its products are used to manage medication administration outside of the hospital setting and include medication adherence products sold under the brand name MTS, Surgichem, SureMed and the Omnicell brand.

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