Financial Review: InnovAge (NASDAQ:INNV) and Elevance Health (NYSE:ELV)

InnovAge (NASDAQ:INNV) and Elevance Health (NYSE:ELV) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

This table compares InnovAge and Elevance Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InnovAge	-1.96%	-7.02%	-3.31%
Elevance Health	2.84%	16.17%	5.78%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnovAge	$853.70 million	0.80	-$30.31 million	($0.13)	-38.69
Elevance Health	$177.01 billion	0.41	$5.98 billion	$24.46	13.51

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

Volatility & Risk

InnovAge has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Elevance Health has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Insider & Institutional Ownership

12.3% of InnovAge shares are owned by institutional investors. Comparatively, 89.2% of Elevance Health shares are owned by institutional investors. 1.0% of InnovAge shares are owned by insiders. Comparatively, 0.3% of Elevance Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for InnovAge and Elevance Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnovAge	2	0	0	0	1.00
Elevance Health	0	11	12	0	2.52

InnovAge currently has a consensus target price of $5.00, indicating a potential downside of 0.60%. Elevance Health has a consensus target price of $398.44, indicating a potential upside of 20.62%. Given Elevance Health’s stronger consensus rating and higher possible upside, analysts clearly believe Elevance Health is more favorable than InnovAge.

Summary

Elevance Health beats InnovAge on 11 of the 14 factors compared between the two stocks.

About InnovAge

InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.

About Elevance Health

Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States. The company operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to program members; health products; an array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, life, disability, and supplemental health insurance benefits. The company operates in the pharmacy services business; and markets and offers pharmacy services, including pharmacy benefit management, as well as home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database, and member services. In addition, it provides healthcare-related services and capabilities, including utilization management, behavioral health, integrated care delivery, palliative care, payment integrity services, subrogation services, and health and wellness programs, as well as services related to data management, information technology, and business operations. Further, the company is involved in the National Government Services business. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brand names. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance Health, Inc. was incorporated in 2001 and is headquartered in Indianapolis, Indiana.